Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Castle Cary. Clearly, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Castle Cary have the legal entitlement to extend the lease for a further ninety years under legislation. Please give careful deliberation before putting off your Castle Cary lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Castle Cary 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 conveyancing solicitor we work with provide it.
Luke was the the leasehold owner of a conversion flat in Castle Cary being marketed with a lease of a little over sixty years unexpired. Luke on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2009 we were contacted by Mr and Mrs. D Bernard who, having owned a purpose-built flat in Castle Cary in August 1996. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Similar properties in Castle Cary with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease came to a finish in 2102. Taking into account 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
In 2013 we were called by Ms Ellen Norbert who, having was assigned a lease of a studio flat in Castle Cary in July 1998. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Castle Cary with a long lease were valued around £176,200. The average ground rent payable was £65 collected per annum. The lease ran out on 12 March 2082. Having 56 years outstanding we estimated the premium to the landlord for the lease extension to be within £29,500 and £34,000 not including fees.