Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Cleator Moor. Inevitably, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Cleator Moor have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful attention before delaying your Cleator Moor lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold properties in Cleator Moor with in excess of 100 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cleator Moor,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cleator Moor valuers.
Last year Oscar, started to get close to the 80-year threshold with the lease on his garden flat in Cleator Moor. In buying his property two decades ago, the unexpired term was of no interest. Thankfully, he realised he needed to take steps soon on a lease extension. Oscar extended the lease at the eleventh hour in March. Oscar and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,025.
In 2014 we were e-mailed by Ms O Howard who, having bought a recently refurbished apartment in Cleator Moor in September 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable flats in Cleator Moor with an extended lease were worth £265,200. The mid-range amount of ground rent was £65 collected quarterly. The lease lapsed on 20 July 2091. Taking into account 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.
Last Summer we were e-mailed by Mr and Mrs. L Young , who took over the lease of a first floor apartment in Cleator Moor in March 2003. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative homes in Cleator Moor with an extended lease were valued about £198,800. The average amount of ground rent was £55 invoiced yearly. The lease ran out on 2 February 2080. Taking into account 55 years left we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.