As the length of the unexpired term of a Catterick Garrison residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 100 years remaining then this decrease may be negligible however there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Catterick Garrison will meet the qualifying criteria; however a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Catterick Garrison with over 100 years unexpired on the lease are sometimes 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Catterick Garrison,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Catterick Garrison valuers.
During the course of the last few months Alexander, started to get near to the 80-year threshold with the lease on his leasehold flat in Catterick Garrison. Having bought his home two decades ago, the lease term was of minimal interest. Luckily, he realised he needed to take steps soon on Extending the lease. Alexander extended the lease just in the nick of time last September. Alexander and the freeholder in the end agreed on the final figure of £6,000 . If he not met the deadline, the sum would have increased by at least £1,150.
Last Spring we were contacted by Dr William Richardson , who was assigned a lease of a studio apartment in Catterick Garrison in July 2004. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Catterick Garrison with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 7 January 2104. Having 78 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
Last Autumn we were approach by Mrs S Jones , who bought a basement flat in Catterick Garrison in September 2000. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar flats in Catterick Garrison with 100 year plus lease were in the region of £191,000. The mid-range amount of ground rent was £65 collected per annum. The lease came to a finish on 15 September 2084. Having 58 years outstanding we approximated the premium to the freeholder to extend the lease to be within £23,800 and £27,400 not including costs.