With a domestic leasehold property in Castleford, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Residents in Castleford with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years outstanding, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Using our service will provide you increased control over the value of your Castleford leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her first floor apartment in Castleford, Chloe started the lease extension process as the eighty year mark was rapidly approaching. The lease extension completed in January 2010. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. K Garcia , who purchased a one bedroom flat in Castleford in August 1997. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparative premises in Castleford with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced quarterly. The lease ran out on 24 January 2085. Having 59 years left we approximated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 not including costs.
Last Autumn we were e-mailed by Dr Paige Bell , who took over the lease of a studio flat in Castleford in May 2007. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative properties in Castleford with a long lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease lapsed in 2105. Taking into account 79 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.