When it comes to domestic leasehold property in Cross Keys, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than 80 years left. Leasehold owners in Cross Keys with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years remaining, under the relevant statute the landlord can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Cross Keys,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cross Keys valuers.
In the wake of eight months of protracted discussions with the landlord of her studio flat in Cross Keys, Poppy initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was finalised in March 2005. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. S Mercier who, having bought a ground floor apartment in Cross Keys in April 1999. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar flats in Cross Keys with a long lease were worth £235,200. The mid-range ground rent payable was £45 collected every twelve months. The lease termination date was in 2092. Having 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Last Christmas we were called by Mr Y Parker , who bought a recently refurbished flat in Cross Keys in January 2006. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar flats in Cross Keys with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease elapsed in 2103. Having 77 years unexpired we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.