It’s a harsh truth that a Cleator residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Cleator property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Cleator will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Cleator 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 conveyancer we work with provide it.
Lewis was the the leasehold owner of a high value apartment in Cleator being marketed with a lease of fraction over sixty years unexpired. Lewis on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2009 we were contacted by Dr F Davies who, having was assigned a lease of a first floor flat in Cleator in November 2003. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Comparable flats in Cleator with a long lease were valued around £250,400. The mid-range ground rent payable was £65 collected annually. The lease elapsed in 2090. Given that there were 64 years outstanding we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus expenses.
Mr F Rodríguez moved into a garden apartment in Cleator in July 2011. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative homes in Cleator with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ran out on 3 February 2079. Having 53 years remaining we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.