The market value of a leasehold property in Market Weighton depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. Ideally one should start the lease extension process when a lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year threshold. Statute enables Market Weighton qualifying lessees to an additional term of ninety years in addition to the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle 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 conveyancer we work with provide it.
Off the back of protracted correspondence with the freeholder of her purpose-built flat in Market Weighton, Amelia commenced the lease extension process as the eighty year threshold was fast nearing. The legal work completed in July 2011. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mr and Mrs. C Adams who, having took over the lease of a studio apartment in Market Weighton in July 2008. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Similar flats in Market Weighton with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 invoiced quarterly. The lease lapsed on 2 April 2106. Having 80 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2009 we were contacted by Mr and Mrs. S Martin who, having took over the lease of a ground floor apartment in Market Weighton in May 2002. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparative residencies in Market Weighton with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease concluded in 2086. Having 60 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of fees.