There is no doubt about it a leasehold property in Catterick Garrison is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Catterick Garrison will meet the qualifying criteria; that being said a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Catterick Garrison can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
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 procuring Catterick Garrison lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold proprietor of a high value flat in Catterick Garrison on the market with a lease of just over sixty years left. Leon informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 yearly. No ground rent would be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Mr and Mrs. V Fournier acquired a basement apartment in Catterick Garrison in May 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Catterick Garrison with 100 year plus lease were in the region of £261,600. The average amount of ground rent was £60 billed yearly. The lease concluded on 10 August 2077. Taking into account 52 years remaining we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including professional charges.
In 2014 we were e-mailed by Dr C García who, having moved into a first floor apartment in Catterick Garrison in April 2012. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable homes in Catterick Garrison with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 6 July 2088. Given that there were 63 years outstanding we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.