Unfortunately that a Caistor residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Caistor property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most flat owners in Caistor will be able to extend under the legislation; however a lawyer should 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 has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a residential leasehold with in excess of 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 property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The lawyers that we work with procure Caistor 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 conveyancer we work with provide it.
During the course of the last few months Aarav, came perilously near to the 80-year threshold with the lease on his one bedroom flat in Caistor. In buying his home two decades ago, the length of the lease was of minimal relevance. Luckily, he became aware that he needed to take action soon on Extending the lease. Aarav extended the lease just in the nick of time in March. Aarav and the landlord in the end settled on the final figure of £6,000 . If the lease had slipped below 80 years, the sum would have gone up by a minimum £925.
Last Spring we were called by Mr J Anderson , who owned a basement flat in Caistor in May 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative properties in Caistor with a long lease were worth £255,000. The average ground rent payable was £50 invoiced quarterly. The lease ended on 8 March 2096. Taking into account 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus expenses.
Last January we were approach by Dr A Lefebvre , who owned a first floor flat in Caistor in March 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by ninety years. Identical homes in Caistor with 100 year plus lease were worth £246,800. The average amount of ground rent was £60 billed monthly. The lease elapsed in 2076. Considering the 50 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including expenses.