It’s an underpublicised certainty that a Castle Vale residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Castle Vale property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Castle Vale will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Castle Vale with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Castle Vale,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Castle Vale valuers.
Trailing protracted correspondence with the landlord of her garden flat in Castle Vale, Chelsea initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The legal work completed in November 2007. The freeholder’s charges were negotiated to slightly above 700 GBP.
Last month we were called by Mr and Mrs. O Murphy , who owned a first floor flat in Castle Vale in August 2012. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable flats in Castle Vale with an extended lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 14 April 2086. Taking into account 61 years outstanding we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
Last year we were e-mailed by Mr and Mrs. W Martínez , who took over the lease of a first floor apartment in Castle Vale in June 2000. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable properties in Castle Vale with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease terminated in 2097. Taking into account 72 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.