The value of Market Weighton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is below than eighty years
Leasehold residencies in Market Weighton with over 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 conveyancing solicitor we work with provide it.
Ollie owned a high value apartment in Market Weighton on the market with a lease of a few days over 61 years remaining. Ollie informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Ollie to exercise his statutory right. Ollie obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mr and Mrs. F Fournier completed a one bedroom apartment in Market Weighton in July 2005. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Market Weighton with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease finished in 2079. Considering the 53 years left we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 plus costs.
In 2012 we were approached by Dr Harrison Clarke who, having moved into a garden apartment in Market Weighton in August 2007. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical flats in Market Weighton with an extended lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced yearly. The lease expiry date was on 16 August 2090. Taking into account 64 years remaining we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including costs.