There is no doubt about it a leasehold flat or house in Catton is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 125 years to run then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending without delay. The majority of flat owners in Catton will qualify for this right; however a conveyancer can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Catton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Catton valuers.
In the wake of 6 months of protracted discussions with the landlord of her purpose-built apartment in Catton, Alexandra started the lease extension process as the 80 year mark was quickly coming. The transaction was concluded in October 2007. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were phoned by Mr and Mrs. F Ali who, having took over the lease of a recently refurbished flat in Catton in July 1996. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Identical flats in Catton with a long lease were valued around £240,600. The average amount of ground rent was £60 collected monthly. The lease expiry date was on 6 August 2088. Given that there were 62 years left we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of legals.
Last month we were called by Dr Hugo Gray , who purchased a basement apartment in Catton in November 2000. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar homes in Catton with a long lease were worth £174,200. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish in 2077. Taking into account 51 years remaining we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.