Market Weighton 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 your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Market Weighton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Market Weighton you really ought to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Market Weighton with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The lawyers that we work with undertake Market Weighton 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.
Lucas owned a 2 bedroom flat in Market Weighton on the market with a lease of fraction over fifty eight years unexpired. Lucas on an informal basis spoke with his freeholder being 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 an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2014 we were called by Mr Jayden Garcia who, having was assigned a lease of a ground floor flat in Market Weighton in February 2008. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical residencies in Market Weighton with a long lease were valued about £191,000. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.
Last Summer we were e-mailed by Mr and Mrs. W Simon , who owned a purpose-built flat in Market Weighton in February 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative flats in Market Weighton with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 collected annually. The lease finished on 26 April 2095. Considering the 69 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.