Castle Vale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Castle Vale residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Castle Vale you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Castle Vale leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
Leasehold premises in Castle Vale with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Castle Vale,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Castle Vale valuers.
Lucas was the the leasehold owner of a high value flat in Castle Vale on the market with a lease of a few days over 59 years remaining. Lucas on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Lucas to exercise his statutory right. Lucas obtained expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Last Winter we were e-mailed by Mr and Mrs. F Fournier , who bought a basement apartment in Castle Vale in September 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical residencies in Castle Vale with a long lease were valued about £260,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 15 February 2098. Given that there were 73 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr V Sánchez completed a first floor flat in Castle Vale in April 1998. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative homes in Castle Vale with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out on 28 May 2078. Given that there were 53 years remaining we calculated the compensation to the freeholder to extend the lease to be within £37,100 and £42,800 not including professional charges.