The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Castleton can extend the lease for an additional 90 years under Leasehold Reform legislation. Please give careful consideration before delaying your Castleton lease extension. Putting off that expense now simply increases the amount you will eventually have to pay to extend the lease.
Leasehold premises in Castleton with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Castleton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Castleton valuers.
Following lengthy negotiations with the landlord of her purpose-built flat in Castleton, Niamh started the lease extension process as the 80 year deadline was fast advancing. The transaction was finalised in September 2008. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Ms O Díaz who, having bought a first floor flat in Castleton in June 2012. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical flats in Castleton with an extended lease were valued about £300,000. The average amount of ground rent was £50 invoiced annually. The lease lapsed in 2101. Having 75 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including expenses.
Last February we were called by Mrs Elizabeth André , who completed a studio flat in Castleton in September 2011. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Castleton with 100 year plus lease were valued around £250,400. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2090. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus professional charges.