The market value of a leasehold property in Catton is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be finalised ahead of the 80 year mark. Current legislation enables Catton qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Catton with in excess of one hundred years unexpired 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 premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Catton can be a difficult process. We recommend you obtain 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 Catton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor was the the leasehold proprietor of a studio apartment in Catton on the market with a lease of fraction over 59 years outstanding. Connor on an informal basis contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
Mr and Mrs. F Clarke acquired a studio flat in Catton in April 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar flats in Catton with a long lease were in the region of £225,800. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed in 2085. Given that there were 60 years remaining we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of legals.
Dr Jade Baker completed a newly refurbished flat in Catton in March 2005. The question was if we could approximate the price would be to prolong the lease by 90 years. Identical homes in Catton with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed annually. The lease ran out in 2105. Considering the 80 years unexpired we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.