For those whose Cleckheaton property is held on a long lease, our message is clear – if nothing is done, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold properties in Cleckheaton with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Cleckheaton can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 in-depth market knowledge dealing with Cleckheaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her garden apartment in Cleckheaton, Daisy started the lease extension process as the 80 year mark was rapidly approaching. The transaction completed in July 2015. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were approached by Mrs V Bailey who, having moved into a one bedroom flat in Cleckheaton in April 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative homes in Cleckheaton with a long lease were valued about £233,200. The average amount of ground rent was £60 invoiced monthly. The lease expiry date was in 2085. Given that there were 61 years left we estimated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 plus professional charges.
Mr R Moreau acquired a first floor apartment in Cleckheaton in June 2002. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparable flats in Cleckheaton with an extended lease were worth £166,800. The average amount of ground rent was £50 billed annually. The lease came to a finish in 2074. Considering the 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 not including expenses.