Cleckheaton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Cleckheaton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Cleckheaton you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Cleckheaton with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you better control over the value of your Cleckheaton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her two bedroom apartment in Cleckheaton, Chelsea initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was concluded in January 2006. The landlord’s fees were kept to an absolute minimum.
In 2011 we were approached by Mrs Georgia Bell who, having moved into a ground floor flat in Cleckheaton in January 1997. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative premises in Cleckheaton with a long lease were valued about £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 15 January 2097. Taking into account 72 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
Dr A Moore bought a recently refurbished flat in Cleckheaton in October 1996. We are asked if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Cleckheaton with a long lease were in the region of £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2086. Considering the 61 years left we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.