Castleton leases on domestic properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Castleton will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Halifax | |
| Yorkshire Building Society |
Lease extensions in Castleton can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 dealing with Castleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Muhammad, started to get close to the 80-year mark with the lease on his leasehold apartment in Castleton. Having purchased his property two decades ago, the unexpired term was of no importance. Thankfully, he recognised he would soon be paying an inflated amount for a lease extension. Muhammad was able to extend his lease just under the wire last January. Muhammad and the landlord in the end settled on a premium of £6,000 . If he not met the deadline, the premium would have gone up by at least £975.
Ms R Green acquired a ground floor apartment in Castleton in May 2012. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable residencies in Castleton with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2082. Considering the 56 years left we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 not including legals.
Last month we were e-mailed by Dr Alfie Ward , who completed a one bedroom apartment in Castleton in October 2009. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar properties in Castleton with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 collected annually. The lease came to a finish in 2102. Taking into account 76 years outstanding we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.