Unfortunately that a Cross Keys residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Cross Keys property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Cross Keys will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Coventry Building Society | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Cross Keys can be a difficult process. We recommend you procure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cross Keys lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her studio flat in Cross Keys, Anna initiated the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in August 2012. The freeholder’s fees were restricted to slightly above five hundred GBP.
Mr and Mrs. R Lambert acquired a recently refurbished flat in Cross Keys in April 2009. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparative residencies in Cross Keys with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected quarterly. The lease terminated in 2099. Given that there were 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Christmas we were approach by Ms Chloe Taylor , who completed a first floor flat in Cross Keys in July 2010. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Cross Keys with an extended lease were valued about £264,000. The average ground rent payable was £60 invoiced monthly. The lease terminated in 2079. Considering the 53 years left we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.