There is no doubt about it a leasehold flat or house in Yorkshire Dales is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner as opposed to later. Many flat owners in Yorkshire Dales will qualify for this right; nevertheless a lawyer can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Yorkshire Dales with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 conveyancing solicitor we work with provide it.
Trailing protracted negotiations with the landlord of her studio flat in Yorkshire Dales, Molly commenced the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction completed in July 2010. The landlord’s costs were negotiated to about 700 pounds.
In 2013 we were contacted by Dr M André who, having completed a one bedroom apartment in Yorkshire Dales in June 2009. The question was if we could approximate the price could be to prolong the lease by an additional years. Comparative flats in Yorkshire Dales with 100 year plus lease were valued about £176,200. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2081. Considering the 56 years remaining we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Mr and Mrs. W Hill owned a first floor apartment in Yorkshire Dales in September 1999. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable premises in Yorkshire Dales with an extended lease were worth £242,600. The mid-range amount of ground rent was £45 collected per annum. The lease terminated in 2092. Given that there were 67 years outstanding we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 plus legals.