When it comes to domestic leasehold property in Catterick Garrison, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than 80 years left. Residents in Catterick Garrison with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. When the lease term has below 80 years remaining, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Catterick Garrison with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Lease extensions in Catterick Garrison can be a difficult process. We recommend you get guidance from a lawyer 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 in-depth market knowledge 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.
During the course of the last few months Isaac, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Catterick Garrison. Having purchased his flat two decades ago, the lease term was of little bearing. Fortunately, he became aware that he needed to take action soon on Extending the lease. Isaac was able to extend his lease just under the wire last March. Isaac and the landlord who owned the flat above in the end settled on sum of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £925.
Last Winter we were approach by Mrs J Torres , who owned a first floor flat in Catterick Garrison in February 2008. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical residencies in Catterick Garrison with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected quarterly. The lease lapsed on 27 February 2097. Given that there were 71 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2013 we were approached by Dr J Smith who, having moved into a ground floor flat in Catterick Garrison in February 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Catterick Garrison with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 billed quarterly. The lease concluded on 8 January 2077. Having 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including legals.