It’s a harsh certainty that a Cross Keys residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Cross Keys property prices.Where your lease has approximately 90 years left, you should start considering 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 below 80 years - otherwise a higher premium will be payable. Most leasehold owners in Cross Keys will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations 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 conveyancer from beginning to end of the formalities.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Cross Keys leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the freeholder of her basement apartment in Cross Keys, Sophie started the lease extension process just as her lease was coming close to the critical 80-year mark. The transaction was concluded in November 2010. The landlord’s costs were kept to an absolute minimum.
Dr W González acquired a studio apartment in Cross Keys in April 2004. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar premises in Cross Keys with a long lease were worth £275,000. The mid-range ground rent payable was £55 invoiced per annum. The lease end date was in 2103. Considering the 77 years remaining we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
In 2011 we were phoned by Mrs Rhiannon Lambert who, having took over the lease of a first floor flat in Cross Keys in March 1997. The question was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Similar properties in Cross Keys with a long lease were worth £183,600. The average amount of ground rent was £65 collected yearly. The lease ran out on 19 March 2083. Considering the 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.