With a long leasehold premises in Willerby, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Leasehold owners in Willerby with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has below 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Willerby with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Willerby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Oliver, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Willerby. Having purchased his flat 19 years ago, the lease term was of little bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Oliver was able to extend his lease at the eleventh hour in May. Oliver and the freeholder eventually agreed on a premium of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £875.
In 2010 we were phoned by Mr Archie Martínez who, having purchased a studio flat in Willerby in April 2012. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable flats in Willerby with an extended lease were in the region of £260,200. The average amount of ground rent was £65 billed yearly. The lease lapsed on 25 July 2092. Taking into account 66 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.
Mr H Ricardo acquired a first floor flat in Willerby in January 2005. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Willerby with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 billed monthly. The lease elapsed on 27 April 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 not including legals.