Unfortunately that a Caister On Sea 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 reduction being disguised by increases in the Caister On Sea property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay 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 extra value that a lease extension will add the property The majority of leasehold owners in Caister On Sea will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if 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 throughout the process.
Leasehold residencies in Caister On Sea with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Caister On Sea,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caister On Sea valuers.
Lucas owned a conversion apartment in Caister On Sea on the market with a lease of a few days over 61 years outstanding. Lucas informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas procured expert advice and secured satisfactory resolution informally and sell the property.
Dr Jonathan Petit bought a one bedroom flat in Caister On Sea in January 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Caister On Sea with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 collected every twelve months. The lease ran out in 2080. Having 54 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.
Last July we were called by Dr Dexter Smith , who took over the lease of a garden flat in Caister On Sea in August 1996. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Caister On Sea with a long lease were in the region of £227,800. The average ground rent payable was £45 invoiced monthly. The lease expired on 11 April 2091. Having 65 years left we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.