When it comes to domestic leasehold premises in Yorkshire Dales, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years left. Leasehold owners in Yorkshire Dales with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Yorkshire Dales with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Yorkshire Dales 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 conveyancer we work with provide it.
Last October Hugo, started to get close to the 80-year mark with the lease on his ground floor flat in Yorkshire Dales. Having purchased his flat two decades ago, the length of the lease was of no bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Hugo extended the lease just under the wire last July. Hugo and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by a minimum £875.
Mr Adam Wood was assigned a lease of a ground floor apartment in Yorkshire Dales in June 1997. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Identical flats in Yorkshire Dales with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished on 24 March 2088. Given that there were 63 years as a residual term we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.
Mr and Mrs. T Johnson acquired a purpose-built flat in Yorkshire Dales in November 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Yorkshire Dales with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £55 collected annually. The lease concluded on 1 October 2099. Given that there were 74 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.