When it comes to residential leasehold property in Cross Keys, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Cross Keys with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold properties in Cross Keys with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Cross Keys leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her studio flat in Cross Keys, Isabelle started the lease extension process just as the lease was nearing the all-important 80-year threshold. The legal work completed in June 2013. The landlord’s charges were restricted to a tad over 550 GBP.
Last Winter we were approach by Dr H Bailey , who was assigned a lease of a one bedroom flat in Cross Keys in October 2004. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable residencies in Cross Keys with 100 year plus lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected per annum. The lease expired in 2076. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of professional charges.
Last Summer we were approach by Dr L Ali , who took over the lease of a garden flat in Cross Keys in October 2001. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable premises in Cross Keys with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2087. Taking into account 63 years unexpired we calculated the premium to the landlord for the lease extension to be between £17,100 and £19,800 not including professional charges.