As the length of the unexpired term of a Cross Keys residential lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Cross Keys will qualify for this right; nevertheless a conveyancing solicitor should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Cross Keys with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Cross Keys lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Twenty four months ago Lucas, came critically close to the eighty-year mark with the lease on his garden apartment in Cross Keys. Having purchased his property 19 years ago, the unexpired term was of minimal concern. Thankfully, he realised he would soon be paying an escalated premium for Extending the lease. Lucas arranged for a lease extension just under the wire in August. Lucas and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had dropped to less than eighty years, the figure would have escalated by at least £1,125.
Last Summer we were e-mailed by Dr M Stewart , who purchased a garden apartment in Cross Keys in April 2003. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Cross Keys with 100 year plus lease were valued around £254,200. The mid-range ground rent payable was £60 billed monthly. The lease terminated on 23 October 2076. Having 51 years unexpired we calculated the premium to the landlord for the lease extension to be within £43,700 and £50,600 plus fees.
Last month we were called by Mr and Mrs. V Lambert , who bought a first floor apartment in Cross Keys in November 2009. The question was if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Cross Keys with 100 year plus lease were valued around £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease finished in 2087. Considering the 62 years as a residual term we calculated the premium to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.