Cross Keys leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Cross Keys will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold properties in Cross Keys with in excess of 100 years outstanding on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Cross Keys leasehold, as your property will be more valuable and saleable in terms of lease length should you decide 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.
Last year Adam, started to get near to the 80-year mark with the lease on his studio apartment in Cross Keys. Having bought his home 19 years previously, the unexpired term was of minimal bearing. by good luck, he recognised he needed to take steps soon on Extending the lease. Adam was able to extend his lease just under the wire last April. Adam and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had slipped below 80 years, the figure would have escalated by a minimum £850.
In 2010 we were phoned by Mr and Mrs. M Roberts who, having completed a ground floor flat in Cross Keys in May 1999. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparative properties in Cross Keys with a long lease were valued around £176,200. The average ground rent payable was £65 billed monthly. The lease lapsed on 10 January 2082. Taking into account 56 years unexpired we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
Last Summer we were called by Mr and Mrs. T Ricardo , who bought a first floor flat in Cross Keys in July 2000. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Cross Keys with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease concluded in 2093. Given that there were 67 years unexpired we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including expenses.