Unfortunately that a Market Weighton residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Market Weighton property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Market Weighton will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold residencies 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancers 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 lawyer we work with provide it.
Jason owned a conversion flat in Market Weighton on the market with a lease of fraction over fifty eight years outstanding. Jason on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2012 we were called by Mrs Lucy Sharif who, having was assigned a lease of a studio flat in Market Weighton in November 2000. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable premises in Market Weighton with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 billed yearly. The lease concluded in 2077. Taking into account 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
In 2012 we were e-mailed by Mr and Mrs. O Walker who, having was assigned a lease of a purpose-built apartment in Market Weighton in February 1997. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar properties in Market Weighton with a long lease were valued around £210,600. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2088. Taking into account 62 years left we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.