There is no doubt about it a leasehold property in Cross Hands is a wasting asset as a result of the diminishing lease term. Where the lease has, beyond 99 years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease without delay. Many flat owners in Cross Hands will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Cross Hands with more than one hundred years outstanding on the lease are often 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 freehold unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Cross Hands leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Eliot was the the leasehold owner of a conversion apartment in Cross Hands being marketed with a lease of fraction over sixty years unexpired. Eliot informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
In 2014 we were phoned by Mr and Mrs. B Gray who, having bought a garden flat in Cross Hands in July 2012. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Similar residencies in Cross Hands with an extended lease were in the region of £255,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2096. Given that there were 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mrs F Bernard completed a newly refurbished apartment in Cross Hands in March 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Cross Hands with 100 year plus lease were valued around £254,200. The average amount of ground rent was £60 billed yearly. The lease concluded on 23 May 2076. Considering the 51 years unexpired we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 not including fees.