The value of Castleford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
| 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 Castleford can be a difficult process. We recommend you procure guidance from a lawyer 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 in-depth market knowledge dealing with Castleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Nathaniel, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Castleford. Having bought his property 19 years ago, the unexpired term was of little concern. Thankfully, he realised he needed to take steps soon on Extending the lease. Nathaniel was able to extend his lease just under the wire in March. Nathaniel and the landlord subsequently agreed on sum of £6,000 . If the lease had gone lower than 80 years, the amount would have gone up by a minimum £1,000.
In 2013 we were contacted by Mr and Mrs. K Martinez who, having purchased a ground floor flat in Castleford in January 2012. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Castleford with 100 year plus lease were in the region of £250,400. The average ground rent payable was £65 invoiced every twelve months. The lease lapsed on 1 June 2090. Given that there were 64 years outstanding we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus professional charges.
Last Summer we were approach by Mr and Mrs. U Rivera , who owned a newly refurbished apartment in Castleford in March 2001. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical residencies in Castleford with a long lease were in the region of £189,000. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed in 2079. Having 53 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.