Cleator Moor leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher amount will be payable. Flat owners in Cleator Moor will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Halifax | 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 Cleator Moor 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 a wealth of experience dealing with Cleator Moor lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Kian, came very near to the eighty-year threshold with the lease on his basement apartment in Cleator Moor. In buying his flat two decades ago, the lease term was of no importance. Fortunately, he recognised he would soon be paying an inflated amount for a lease extension. Kian was able to extend his lease just in the nick of time last June. Kian and the landlord who owned the flat above ultimately agreed on sum of £5,500 . If he had missed the deadline, the sum would have escalated by a minimum £1,050.
In 2012 we were called by Mrs F Davies who, having took over the lease of a ground floor apartment in Cleator Moor in January 1995. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical homes in Cleator Moor with an extended lease were worth £233,200. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed in 2086. Having 61 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.
Dr I Walker owned a ground floor apartment in Cleator Moor in October 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar premises in Cleator Moor with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease expiry date was on 16 November 2075. Having 50 years as a residual term we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of fees.