For anyone whose Catton home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Catton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Catton valuers.
Following protracted correspondence with the freeholder of her two bedroom flat in Catton, Alicia initiated the lease extension process just as her lease was coming close to the all-important 80-year threshold. The transaction was concluded in July 2014. The landlord’s costs were negotiated to under 550 GBP.
Mr and Mrs. G Smith purchased a first floor flat in Catton in March 1999. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparative properties in Catton with a long lease were worth £267,600. The average amount of ground rent was £65 invoiced yearly. The lease finished on 26 June 2093. Considering the 67 years remaining we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
Mr E Garcia took over the lease of a one bedroom flat in Catton in April 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative residencies in Catton with an extended lease were worth £206,200. The mid-range ground rent payable was £55 billed every twelve months. The lease ended on 9 May 2082. Having 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including fees.