Cherry Willingham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Cherry Willingham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Cherry Willingham you really ought to investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Cherry Willingham can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 procuring Cherry Willingham 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 Ben, started to get near to the 80-year mark with the lease on his ground floor flat in Cherry Willingham. Having bought his property two decades ago, the unexpired term was of no bearing. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Ben arranged for a lease extension just in the nick of time in August. Ben and the freeholder eventually agreed on a premium of £6,000 . If he not met the deadline, the premium would have increased by at least £1,100.
Last month we were called by Dr N Hernández , who purchased a studio apartment in Cherry Willingham in June 1995. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar residencies in Cherry Willingham with 100 year plus lease were valued about £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease finished on 2 January 2098. Considering the 73 years remaining we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were called by Dr G Miller , who purchased a studio apartment in Cherry Willingham in January 1996. We are asked if we could approximate the price would be to prolong the lease by ninety years. Comparable homes in Cherry Willingham with an extended lease were valued about £240,600. The mid-range ground rent payable was £60 collected every twelve months. The lease expiry date was on 18 April 2087. Taking into account 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of fees.