With a long leasehold property in Wetherby, you are actually buying an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Residents in Wetherby with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has less than eighty years remaining, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Wetherby with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Wetherby,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Wetherby valuers.
Noah was the the leasehold proprietor of a conversion apartment in Wetherby being marketed with a lease of just over 72 years left. Noah informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Autumn we were phoned by Dr Reuben Martínez , who completed a purpose-built flat in Wetherby in March 2004. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar homes in Wetherby with a long lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed in 2085. Having 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 plus expenses.
In 2009 we were phoned by Dr Jack Young who, having was assigned a lease of a recently refurbished apartment in Wetherby in November 2002. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative homes in Wetherby with 100 year plus lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated on 6 June 2096. Given that there were 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.