There is no doubt about it a leasehold property in Caistor is a wasting asset as a result of the diminishing lease term. Where the lease has, over 100 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Caistor will qualify for this right; nevertheless a lawyer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | 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 |
Regardless of whether you are a tenant or a landlord in Caistor,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caistor valuers.
Last Summer Evan, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Caistor. Having bought his flat two decades ago, the length of the lease was of minimal significance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Evan extended the lease at the eleventh hour last September. Evan and the freeholder eventually agreed on an amount of £6,000 . If he had missed the deadline, the amount would have increased by a minimum £925.
Mrs Chantelle Lefèvre completed a studio apartment in Caistor in February 2002. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Caistor with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed per annum. The lease expired on 26 November 2093. Having 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including professional charges.
In 2013 we were contacted by Mr and Mrs. N Alexander who, having was assigned a lease of a one bedroom flat in Caistor in October 1995. The question was if we could estimate the price could be to extend the lease by a further 90 years. Comparative homes in Caistor with a long lease were valued about £280,000. The mid-range ground rent payable was £55 billed annually. The lease concluded in 2104. Taking into account 78 years left we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.