The closer a residential lease in Castle Cary gets to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Castle Cary will qualify for this right; that being said a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Castle Cary with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Castle Cary leasehold, as your property will be more valuable and saleable 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.
Following protracted discussions with the freeholder of her garden apartment in Castle Cary, Jordan commenced the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was concluded in August 2009. The landlord’s costs were kept to an absolute minimum.
In 2014 we were contacted by Dr R Gray who, having took over the lease of a garden flat in Castle Cary in August 2005. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative residencies in Castle Cary with an extended lease were worth £246,800. The average ground rent payable was £60 collected annually. The lease ran out in 2075. Given that there were 50 years left we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 not including costs.
Mrs J Mitchell purchased a one bedroom flat in Castle Cary in October 2010. The dilemma was if we could approximate the price could be to prolong the lease by a further 90 years. Similar residencies in Castle Cary with a long lease were worth £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish on 21 March 2086. Taking into account 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of fees.