Cross Keys leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Cross Keys will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cross Keys with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Cross Keys leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in Cross Keys, Rosie commenced the lease extension process as the 80 year deadline was quickly nearing. The transaction completed in January 2006. The landlord’s fees were kept to an absolute minimum.
Last Spring we were e-mailed by Dr Felix Bennett , who owned a basement flat in Cross Keys in September 2006. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Cross Keys with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished on 7 September 2090. Considering the 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 not including fees.
Last Autumn we were called by Mr and Mrs. K Brown , who took over the lease of a one bedroom flat in Cross Keys in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Cross Keys with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded on 5 May 2101. Given that there were 75 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.