Cleator Moor leases on residential properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Cleator Moor will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with undertake Cleator Moor lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Jason, started to get close to the 80-year threshold with the lease on his leasehold apartment in Cleator Moor. In buying his home 18 years previously, the lease term was of minimal relevance. As luck would have it, he noticed he would soon be paying an escalated premium for Extending the lease. Jason arranged for a lease extension at the eleventh hour last March. Jason and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If the lease had fallen below eighty years, the premium would have gone up by a minimum £1,100.
In 2013 we were approached by Mr and Mrs. P Stewart who, having completed a garden flat in Cleator Moor in August 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Identical properties in Cleator Moor with a long lease were in the region of £285,000. The average ground rent payable was £45 billed per annum. The lease lapsed in 2097. Given that there were 71 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
In 2011 we were approached by Dr M Murphy who, having took over the lease of a garden apartment in Cleator Moor in May 1997. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative residencies in Cleator Moor with 100 year plus lease were worth £230,800. The mid-range ground rent payable was £60 collected yearly. The lease end date was on 3 April 2086. Considering the 60 years unexpired we estimated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including expenses.