Catton leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Catton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and formalities to follow once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Catton with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire 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. |
Engaging our service will provide you better control over the value of your Catton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the freeholder of her first floor apartment in Catton, Bethany initiated the lease extension process as the eighty year deadline was fast nearing. The legal work was finalised in November 2007. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. A Cox who, having was assigned a lease of a studio flat in Catton in May 2009. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative homes in Catton with a long lease were valued about £208,600. The average ground rent payable was £60 collected yearly. The lease came to a finish in 2083. Having 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of fees.
Last year we were phoned by Mr O Lewis , who was assigned a lease of a recently refurbished flat in Catton in October 2007. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Similar premises in Catton with a long lease were valued about £200,000. The mid-range ground rent payable was £50 collected annually. The lease lapsed on 15 July 2103. Considering the 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.