Castleton residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
Leasehold premises in Castleton with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Castleton can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Castleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Harvey, came critically near to the eighty-year mark with the lease on his studio flat in Castleton. In buying his home two decades ago, the length of the lease was of no relevance. Luckily, he became aware that he would soon be paying an inflated amount for Extending the lease. Harvey extended the lease just in the nick of time in August. Harvey and the landlord who owned the flat above in the end settled on the final figure of £5,000 . If the lease had slipped to less than eighty years, the price would have escalated by at least £1,050.
In 2013 we were contacted by Mr M Hall who, having took over the lease of a recently refurbished flat in Castleton in November 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative properties in Castleton with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 billed annually. The lease ran out in 2081. Considering the 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.
In 2013 we were approached by Mr and Mrs. H Nguyen who, having moved into a first floor flat in Castleton in November 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Castleton with an extended lease were worth £200,000. The average ground rent payable was £50 billed per annum. The lease concluded in 2101. Having 77 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of expenses.