Cawthorne leases on residential properties are gradually losing value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Cawthorne will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cawthorne can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 a wealth of experience dealing with Cawthorne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Ali, came critically close to the eighty-year threshold with the lease on his first floor apartment in Cawthorne. Having bought his property two decades ago, the unexpired term was of little relevance. Thankfully, he noticed he needed to take steps soon on Extending the lease. Ali arranged for a lease extension at the eleventh hour last September. Ali and the landlord who owned the flat above ultimately settled on an amount of £5,500 . If the lease had dropped below eighty years, the amount would have gone up by a minimum £1,100.
Last year we were approach by Mrs Natalie Lambert , who purchased a ground floor flat in Cawthorne in August 1997. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparable residencies in Cawthorne with an extended lease were in the region of £183,600. The average amount of ground rent was £65 billed monthly. The lease finished on 5 April 2083. Taking into account 57 years left we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
In 2010 we were e-mailed by Mr and Mrs. T Jackson who, having took over the lease of a ground floor apartment in Cawthorne in June 2005. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Cawthorne with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2094. Given that there were 68 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.