Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cilcain. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Cilcain have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give careful deliberation before putting off your Cilcain lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Cilcain with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Cilcain can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience procuring Cilcain lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful discussions with the landlord of her one bedroom apartment in Cilcain, Freya started the lease extension process as the eighty year mark was rapidly coming. The transaction was finalised in April 2008. The landlord’s charges were kept to an absolute minimum.
Last Christmas we were phoned by Mr Michael Jones , who moved into a one bedroom flat in Cilcain in August 2001. The question was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar residencies in Cilcain with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 collected per annum. The lease terminated on 25 November 2095. Considering the 70 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Last Christmas we were phoned by Dr K Miller , who took over the lease of a one bedroom apartment in Cilcain in October 2005. The question was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical residencies in Cilcain with a long lease were in the region of £246,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease ran out on 16 September 2075. Taking into account 50 years unexpired we calculated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 plus costs.