The re-sale value of a leasehold property in Market Weighton is impacted by how long the lease has remaining. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded ahead of the eighty year cut off point. Statute entitles Market Weighton qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| 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. |
Engaging our service will provide you increased control over the value of your Market Weighton leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Ethan, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Market Weighton. In buying his property two decades ago, the lease term was of no importance. by good luck, he realised he would soon be paying an inflated amount for a lease extension. Ethan arranged for a lease extension just ahead of time in April. Ethan and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had fallen below 80 years, the premium would have become more costly by a minimum £925.
Dr E Martínez took over the lease of a first floor flat in Market Weighton in May 2011. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar properties in Market Weighton with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 invoiced monthly. The lease terminated on 23 June 2076. Having 50 years left we calculated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus fees.
Mr and Mrs. U Wilson took over the lease of a one bedroom apartment in Market Weighton in May 2009. The question was if we could estimate the price could be to prolong the lease by 90 years. Identical properties in Market Weighton with 100 year plus lease were worth £208,200. The average amount of ground rent was £65 billed quarterly. The lease end date was in 2087. Given that there were 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including fees.