Yorkshire Dales leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Yorkshire Dales tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Yorkshire Dales you must see if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Yorkshire Dales with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Yorkshire Dales can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Yorkshire Dales lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy correspondence with the freeholder of her basement apartment in Yorkshire Dales, Kayleigh started the lease extension process just as the lease was nearing the all-important eighty-year mark. The lease extension was finalised in November 2006. The landlord’s fees were restricted to slightly above 450 GBP.
In 2013 we were called by Mr and Mrs. O Young who, having acquired a garden apartment in Yorkshire Dales in October 2004. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Yorkshire Dales with 100 year plus lease were valued around £191,000. The average ground rent payable was £65 billed monthly. The lease concluded in 2084. Given that there were 58 years unexpired we estimated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
Last Autumn we were phoned by Mrs O Rose , who was assigned a lease of a garden flat in Yorkshire Dales in March 2009. We are asked if we could estimate the price could be to prolong the lease by a further 90 years. Identical residencies in Yorkshire Dales with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded in 2095. Taking into account 69 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.