Unfortunately that a Castle Eden residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Castle Eden property prices.Where your lease has approximately 90 years left, you need to start considering 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 dips under eighty years - otherwise a higher amount will be payable. The majority of flat owners in Castle Eden will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Castle Eden can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Castle Eden lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the landlord of her studio apartment in Castle Eden, Jennifer commenced the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work was finalised in February 2006. The landlord’s fees were kept to an absolute minimum.
Last year we were e-mailed by Mr Blake Taylor , who moved into a ground floor apartment in Castle Eden in March 2006. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Castle Eden with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended in 2093. Taking into account 68 years unexpired we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
In 2013 we were phoned by Dr V Jones who, having took over the lease of a ground floor apartment in Castle Eden in April 2006. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical flats in Castle Eden with an extended lease were valued about £285,000. The average amount of ground rent was £55 collected per annum. The lease expired in 2104. Considering the 79 years outstanding we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.