Willerby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Willerby tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Willerby you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Willerby flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
The lawyers that we work with handle 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 Christmas Tommy, started to get near to the 80-year mark with the lease on his ground floor flat in Willerby. Having bought his home two decades ago, the length of the lease was of minimal bearing. by good luck, it dawned on him that he would imminently be paying way over the odds for a lease extension. Tommy arranged for a lease extension just ahead of time in January. Tommy and the freeholder via the managing agents ultimately agreed on an amount of £5,500 . If the lease had slipped to less than 80 years, the premium would have escalated by a minimum £1,100.
Mr and Mrs. J Martin purchased a first floor flat in Willerby in March 2006. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical properties in Willerby with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected yearly. The lease terminated in 2093. Considering the 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last year we were phoned by Mr and Mrs. N Davis , who acquired a basement apartment in Willerby in June 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Willerby with 100 year plus lease were valued about £208,600. The average amount of ground rent was £60 billed yearly. The lease finished in 2082. Having 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.