Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Castleford. Inevitably, the period of lease left reduces over time. This is often overlooked and only becomes a problem when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Castleford have the right to extend the lease for an additional ninety years under statute. Do give careful consideration before delaying your Castleford lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Castleford can be a difficult process. We recommend you procure guidance from a lawyer and surveyor 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 Castleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Connor, came critically close to the eighty-year mark with the lease on his two bedroom apartment in Castleford. Having purchased his property two decades ago, the lease term was of little relevance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Connor was able to extend his lease at the eleventh hour last March. Connor and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had dropped below eighty years, the premium would have increased by a minimum £850.
Last August we were phoned by Mrs S Sánchez , who bought a ground floor flat in Castleford in June 2004. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Castleford with a long lease were in the region of £240,600. The average ground rent payable was £60 billed annually. The lease finished in 2087. Given that there were 62 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
Dr W Jones completed a purpose-built flat in Castleford in October 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Castleford with a long lease were worth £174,200. The average ground rent payable was £55 invoiced monthly. The lease termination date was on 2 June 2076. Having 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus expenses.