Castleton and Blacktown leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Castleton and Blacktown enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Castleton and Blacktown you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Castleton and Blacktown with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| 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. |
The lawyers that we work with procure Castleton and Blacktown lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the landlord of her basement flat in Castleton and Blacktown, Molly commenced the lease extension process as the eighty year threshold was quickly advancing. The transaction was finalised in January 2014. The freeholder’s costs were kept to an absolute minimum.
Last month we were called by Mr and Mrs. V Dupont , who completed a ground floor flat in Castleton and Blacktown in August 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical homes in Castleton and Blacktown with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease end date was on 16 July 2094. Having 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2014 we were approached by Mr and Mrs. R Morgan who, having bought a studio flat in Castleton and Blacktown in February 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable premises in Castleton and Blacktown with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 collected monthly. The lease finished in 2083. Taking into account 57 years left we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.