As the length of the unexpired term of a Castleton domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. Many flat owners in Castleton will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Castleton with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Castleton 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her two bedroom flat in Castleton, Mollie started the lease extension process just as the lease was coming close to the critical eighty-year mark. The lease extension was concluded in June 2013. The freeholder’s charges were restricted to below 650 pounds.
Last Summer we were contacted by Mrs Freya Martínez , who was assigned a lease of a ground floor apartment in Castleton in November 2001. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar premises in Castleton with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 collected monthly. The lease elapsed in 2106. Considering the 80 years remaining we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
In 2012 we were e-mailed by Mrs Charlotte Brown who, having completed a first floor flat in Castleton in August 2005. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Identical properties in Castleton with an extended lease were worth £280,000. The average ground rent payable was £45 billed annually. The lease elapsed on 22 July 2096. Having 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.