There is no doubt about it a leasehold flat or house in Catshill is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Catshill will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify to extend your lease. 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 properties in Catshill with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Catshill,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Catshill valuers.
James was the the leasehold proprietor of a high value apartment in Catshill on the market with a lease of fraction over fifty eight years unexpired. James on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to grant 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 James to invoke his statutory right. James obtained expert advice and secured satisfactory deal informally and sell the property.
In 2009 we were e-mailed by Dr F Turner who, having completed a first floor apartment in Catshill in March 2006. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by an additional years. Similar premises in Catshill with 100 year plus lease were in the region of £227,800. The average ground rent payable was £45 invoiced annually. The lease terminated on 14 April 2091. Considering the 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
In 2011 we were approached by Mr Reuben Hill who, having purchased a first floor apartment in Catshill in April 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative premises in Catshill with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 billed annually. The lease ran out in 2102. Having 76 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.