Castleton and Blacktown leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have 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 extra value that a lease extension will add to the property. Leasehold owners in Castleton and Blacktown will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Castleton and Blacktown with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Castleton and Blacktown can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 procuring Castleton and Blacktown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Evan, started to get near to the 80-year threshold with the lease on his ground floor apartment in Castleton and Blacktown. In buying his flat 19 years previously, the lease term was of no concern. As luck would have it, he noticed he would soon be paying way over the odds for a lease extension. Evan extended the lease just under the wire in July. Evan and the freeholder subsequently settled on a premium of £5,000 . If the lease had gone to less than eighty years, the sum would have increased by a minimum £925.
In 2012 we were approached by Mr and Mrs. L Anderson who, having owned a basement flat in Castleton and Blacktown in March 2006. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable residencies in Castleton and Blacktown with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed per annum. The lease ended on 22 May 2104. Having 78 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2012 we were called by Mr and Mrs. Y Martinez who, having was assigned a lease of a purpose-built apartment in Castleton and Blacktown in July 1998. The question was if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Castleton and Blacktown with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 collected yearly. The lease ran out in 2093. Having 67 years unexpired we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 plus costs.