Cleckheaton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Cleckheaton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Cleckheaton you would be well advised to check if your lease has between 70 and ninety years remaining. There are good reasons why a Cleckheaton leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you enhanced control over the value of your Cleckheaton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tyler owned a studio flat in Cleckheaton being marketed with a lease of just over 59 years remaining. Tyler informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last Christmas we were called by Mr and Mrs. T Sánchez , who was assigned a lease of a basement flat in Cleckheaton in October 2012. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Comparative homes in Cleckheaton with 100 year plus lease were worth £223,400. The average ground rent payable was £60 invoiced annually. The lease concluded in 2085. Having 59 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 not including professional charges.
In 2013 we were e-mailed by Mr C Martin who, having moved into a garden flat in Cleckheaton in May 2012. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Identical residencies in Cleckheaton with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2105. Given that there were 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.