Unfortunately that a Cleckheaton residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Cleckheaton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most flat owners in Cleckheaton will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cleckheaton can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 a wealth of experience procuring Cleckheaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Edward was the the leasehold proprietor of a studio flat in Cleckheaton on the market with a lease of a little over 61 years remaining. Edward informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to invoke his statutory right. Edward obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Mrs Morgan Ramírez moved into a recently refurbished flat in Cleckheaton in April 2003. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar flats in Cleckheaton with an extended lease were worth £184,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease expired in 2078. Taking into account 53 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
In 2012 we were contacted by Mr T Lambert who, having purchased a one bedroom flat in Cleckheaton in June 2012. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Comparative flats in Cleckheaton with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected every twelve months. The lease end date was in 2098. Considering the 73 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus professional charges.