Castleton and Blacktown leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher amount will be due. Leasehold owners in Castleton and Blacktown will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Castleton and Blacktown can be a difficult process. We recommend you obtain guidance from a conveyancer 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 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.
Following unsuccessful negotiations with the landlord of her garden flat in Castleton and Blacktown, Lauren initiated the lease extension process just as the lease was approaching the critical eighty-year deadline. The lease extension was finalised in September 2006. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. I Bertrand who, having was assigned a lease of a basement flat in Castleton and Blacktown in March 2010. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical flats in Castleton and Blacktown with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out on 14 October 2106. Taking into account 80 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
In 2011 we were phoned by Mr and Mrs. G Pérez who, having purchased a studio apartment in Castleton and Blacktown in January 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Castleton and Blacktown with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2095. Given that there were 69 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.