As the the remaining lease term of a Castle Cary residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Castle Cary will qualify for this right; nevertheless a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Castle Cary leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Milo, came critically close to the 80-year threshold with the lease on his leasehold flat in Castle Cary. In buying his property two decades ago, the lease term was of no significance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Milo was able to extend his lease at the eleventh hour in September. Milo and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had slipped lower than 80 years, the amount would have escalated by a minimum £1,150.
Mr and Mrs. B Simon acquired a recently refurbished apartment in Castle Cary in November 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical residencies in Castle Cary with an extended lease were valued about £270,000. The mid-range amount of ground rent was £55 billed yearly. The lease elapsed in 2099. Having 74 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
In 2012 we were phoned by Dr L Adams who, having completed a recently refurbished apartment in Castle Cary in July 2006. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Castle Cary with 100 year plus lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed in 2079. Considering the 54 years outstanding we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.