Yorkshire Dales 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 the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Yorkshire Dales residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Yorkshire Dales you should see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Yorkshire Dales,the lease extension lawyers 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 Yorkshire Dales valuers.
Liam was the the leasehold owner of a high value flat in Yorkshire Dales being sold with a lease of a few days over 72 years outstanding. Liam informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. O Kelly was assigned a lease of a first floor apartment in Yorkshire Dales in November 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Yorkshire Dales with a long lease were worth £260,000. The average amount of ground rent was £50 collected quarterly. The lease expired on 16 August 2098. Taking into account 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
Mr Tyler Martin took over the lease of a basement flat in Yorkshire Dales in January 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparative premises in Yorkshire Dales with 100 year plus lease were valued about £256,600. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2078. Having 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 plus professional charges.