When it comes to residential leasehold premises in Catton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Residents in Catton with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years remaining, under the relevant Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold premises in Catton with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Catton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Austin was the the leasehold owner of a conversion apartment in Catton being sold with a lease of fraction over sixty years unexpired. Austin on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
In 2014 we were called by Mrs I Kelly who, having completed a purpose-built apartment in Catton in June 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Catton with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected annually. The lease end date was in 2104. Taking into account 79 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Mrs U Sharif acquired a basement apartment in Catton in January 2007. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical premises in Catton with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease end date was on 13 May 2093. Taking into account 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.