With a residential leasehold premises in Cleator Moor, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days 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 a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Residents in Cleator Moor with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has less than 80 years left, under the current legislation the landlord can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you enhanced control over the value of your Cleator Moor leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Eli, started to get close to the eighty-year mark with the lease on his one bedroom apartment in Cleator Moor. In buying his home 19 years previously, the unexpired term was of minimal bearing. by good luck, he noticed he would soon be paying way over the odds for Extending the lease. Eli was able to extend his lease just under the wire in June. Eli and the freeholder subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the amount would have increased by at least £1,125.
Last month we were contacted by Dr Kyle François , who was assigned a lease of a newly refurbished flat in Cleator Moor in February 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by an additional years. Comparative flats in Cleator Moor with an extended lease were worth £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease came to a finish in 2098. Given that there were 73 years left we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were called by Mr Sebastian Anderson who, having owned a ground floor apartment in Cleator Moor in February 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Cleator Moor with a long lease were in the region of £240,600. The average amount of ground rent was £60 collected every twelve months. The lease elapsed in 2087. Considering the 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.