Caergwrle residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The lawyers that we work with procure Caergwrle 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 lawyer we work with provide it.
Kian was the the leasehold owner of a conversion flat in Caergwrle on the market with a lease of just over 59 years unexpired. Kian on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Ms I González bought a studio flat in Caergwrle in September 1995. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar properties in Caergwrle with 100 year plus lease were worth £216,000. The average ground rent payable was £60 invoiced every twelve months. The lease expired in 2084. Having 58 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Mr and Mrs. P Roberts purchased a purpose-built flat in Caergwrle in January 2000. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Caergwrle with a long lease were valued around £205,000. The mid-range amount of ground rent was £50 collected annually. The lease ended on 21 April 2104. Given that there were 78 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.