The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Cleator may extend the lease for an additional 90 years under statute. Please think carefully before delaying your Cleator lease extension. Putting off that expense now simply escalates the amount you will eventually have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
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 lawyer we work with provide it.
Joseph was the the leasehold owner of a 2 bedroom apartment in Cleator being marketed with a lease of fraction over fifty eight years outstanding. Joseph informally contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Mr and Mrs. F Wright completed a recently refurbished flat in Cleator in March 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Cleator with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 billed monthly. The lease termination date was in 2098. Having 73 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr Y Brown owned a purpose-built apartment in Cleator in May 2007. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Cleator with a long lease were valued about £235,600. The mid-range ground rent payable was £60 invoiced per annum. The lease lapsed in 2087. Taking into account 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of costs.