Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Yorkshire Dales. Clearly, the term of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Yorkshire Dales have the right to extend the lease for an additional ninety years under legislation. Do give due deliberation before delaying your Yorkshire Dales lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold properties in Yorkshire Dales with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors 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 lawyer we work with provide it.
Nathan owned a 2 bedroom apartment in Yorkshire Dales being marketed with a lease of a little over 72 years remaining. Nathan informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. W Gómez moved into a first floor flat in Yorkshire Dales in September 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Similar flats in Yorkshire Dales with a long lease were worth £264,000. The average ground rent payable was £60 collected every twelve months. The lease expired on 23 May 2079. Given that there were 53 years outstanding we calculated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including costs.
Last month we were contacted by Mr and Mrs. W Stewart , who purchased a studio flat in Yorkshire Dales in October 1997. We are asked if we could estimate the price could be to extend the lease by a further 90 years. Similar flats in Yorkshire Dales with a long lease were worth £225,400. The mid-range amount of ground rent was £45 billed yearly. The lease finished on 27 February 2090. Considering the 64 years outstanding we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 not including professional charges.