With a long leasehold property in Cilcain, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially when there are less than eighty years left. Anyone in Cilcain with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the current legislation the freeholder can calculate and levy a larger premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Cilcain with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Cilcain can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 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 2014 Kian, came perilously close to the 80-year mark with the lease on his purpose- built apartment in Cilcain. In buying his home two decades ago, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take steps soon on a lease extension. Kian extended the lease just under the wire last August. Kian and the landlord in the end settled on an amount of £5,000 . If he failed to meet the deadline, the price would have become more exhorbitant by at least £1,150.
Last year we were phoned by Mr and Mrs. N King , who completed a basement apartment in Cilcain in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Cilcain with an extended lease were valued about £186,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease expiry date was on 28 August 2084. Having 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 not including legals.
In 2014 we were contacted by Mr J Alexander who, having was assigned a lease of a studio apartment in Cilcain in November 2007. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable premises in Cilcain with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2095. Considering the 69 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.