When it comes to residential leasehold property in Wetherby, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are fewer than 80 years remaining. Anyone in Wetherby with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years remaining, under the current Act the freeholder can calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Wetherby with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
Using our service gives you better control over the value of your Wetherby leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the landlord of her two bedroom apartment in Wetherby, Lucy started the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work was finalised in October 2012. The landlord’s charges were kept to an absolute minimum.
Last year we were approach by Dr Jade Bertrand , who moved into a studio flat in Wetherby in June 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Identical properties in Wetherby with a long lease were worth £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease concluded on 12 February 2088. Considering the 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
In 2011 we were called by Dr F López who, having acquired a newly refurbished flat in Wetherby in August 2012. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative premises in Wetherby with a long lease were worth £265,000. The average amount of ground rent was £50 billed monthly. The lease concluded in 2099. Taking into account 73 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.