As the the remaining lease term of a Cawthorne residential lease decreases so does its value and therefore the value of your property. If the residual term has, beyond 99 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Most flat owners in Cawthorne will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Cawthorne with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Cawthorne can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 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 Blake, came perilously near to the 80-year threshold with the lease on his ground floor apartment in Cawthorne. In buying his flat two decades ago, the unexpired term was of little significance. Luckily, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Blake arranged for a lease extension at the eleventh hour in April. Blake and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had slid to less than 80 years, the sum would have become more exhorbitant by a minimum £875.
Mr and Mrs. B Miller purchased a ground floor apartment in Cawthorne in May 2005. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparative homes in Cawthorne with an extended lease were in the region of £173,800. The average ground rent payable was £60 billed per annum. The lease ended in 2080. Having 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.
Mr and Mrs. F Jones purchased a recently refurbished flat in Cawthorne in June 1995. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative homes in Cawthorne with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease elapsed in 2091. Considering the 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.