It’s an underpublicised certainty that a Caister On Sea residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Caister On Sea property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term falls under 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Caister On Sea will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is generally considered 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 any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you enhanced control over the value of your Caister On Sea leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her one bedroom apartment in Caister On Sea, Jasmine commenced the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work completed in October 2008. The landlord’s costs were kept to an absolute minimum.
In 2012 we were approached by Dr W Ricardo who, having bought a ground floor apartment in Caister On Sea in June 2002. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Caister On Sea with a long lease were valued about £235,200. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2092. Taking into account 66 years left we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
Mrs Kelsey Martinez owned a one bedroom apartment in Caister On Sea in April 2012. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Caister On Sea with a long lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 26 September 2103. Given that there were 77 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus expenses.