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 the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Castleton and Blacktown residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Castleton and Blacktown you should check if your lease has between 70 and ninety years remaining. There are good reasons why a Castleton and Blacktown leaseholder with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Using our service will provide you enhanced control over the value of your Castleton and Blacktown leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ethan owned a high value apartment in Castleton and Blacktown on the market with a lease of fraction over fifty eight years unexpired. Ethan informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were contacted by Dr P Taylor who, having was assigned a lease of a one bedroom flat in Castleton and Blacktown in June 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Castleton and Blacktown with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed in 2087. Considering the 61 years remaining we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.
In 2014 we were contacted by Mrs D González who, having purchased a first floor apartment in Castleton and Blacktown in September 2006. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Castleton and Blacktown with 100 year plus lease were valued about £171,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease came to a finish on 14 May 2076. Given that there were 50 years unexpired we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.