Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Castle Eden. Inevitably, the period of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold 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 Eden have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. You should give due consideration before delaying your Castle Eden lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Castle Eden with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Castle Eden,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Castle Eden valuers.
In the wake of eight months of lengthy correspondence with the landlord of her ground floor apartment in Castle Eden, Sarah commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction was finalised in April 2014. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were e-mailed by Mr and Mrs. M King who, having bought a first floor flat in Castle Eden in November 2001. The dilemma was if we could approximate the price would be for a ninety year lease extension. Comparative properties in Castle Eden with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2105. Having 80 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Last Summer we were phoned by Mr G Torres , who acquired a one bedroom apartment in Castle Eden in April 2004. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Comparative flats in Castle Eden with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 invoiced monthly. The lease terminated on 15 July 2085. Considering the 60 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £20,900 and £24,200 not including fees.