Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Mirfield. Clearly, the term of lease left shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Mirfield have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due attention before delaying your Mirfield lease extension. Putting off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Mirfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Luke, came very near to the 80-year mark with the lease on his one bedroom apartment in Mirfield. Having bought his home 18 years previously, the unexpired term was of minimal significance. As luck would have it, he realised he would imminently be paying way over the odds for Extending the lease. Luke extended the lease at the eleventh hour last July. Luke and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,125.
Mr and Mrs. K Morris purchased a recently refurbished apartment in Mirfield in October 2011. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar premises in Mirfield with a long lease were worth £290,000. The average ground rent payable was £45 invoiced monthly. The lease came to a finish on 2 November 2096. Considering the 72 years remaining we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of professional charges.
Dr Molly Nguyen took over the lease of a studio apartment in Mirfield in June 1998. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Mirfield with an extended lease were in the region of £235,600. The mid-range ground rent payable was £60 invoiced yearly. The lease ended on 4 February 2086. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.