When it comes to residential leasehold property in Cleator Moor, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Cleator Moor with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. Once a lease has less than eighty years left, under the relevant Act the landlord can calculate and charge a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Cleator Moor with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Cleator Moor can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 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.
Nathan was the the leasehold proprietor of a conversion flat in Cleator Moor being marketed with a lease of fraction over 72 years outstanding. Nathan on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Nathan to exercise his statutory right. Nathan obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Mrs C Lambert who, having owned a first floor flat in Cleator Moor in February 1997. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative premises in Cleator Moor with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 billed annually. The lease expiry date was on 19 July 2104. Taking into account 78 years left we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.
Last January we were phoned by Mr A Gómez , who purchased a studio apartment in Cleator Moor in February 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Cleator Moor with 100 year plus lease were in the region of £267,600. The average ground rent payable was £65 collected annually. The lease elapsed in 2093. Considering the 67 years left we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.