Chances are that if you own a flat in Cleckheaton you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Cleckheaton 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.
Two years ago Oscar, came seriously close to the eighty-year threshold with the lease on his one bedroom flat in Cleckheaton. In buying his property two decades ago, the lease term was of little relevance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Oscar was able to extend his lease just ahead of time last March. Oscar and the freeholder eventually agreed on an amount of £6,000 . If the lease had slipped to less than 80 years, the amount would have escalated by a minimum £950.
Last year we were e-mailed by Mrs Yasmin White , who completed a ground floor flat in Cleckheaton in April 2012. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative residencies in Cleckheaton with 100 year plus lease were worth £295,000. The average amount of ground rent was £50 billed yearly. The lease concluded in 2101. Given that there were 75 years unexpired we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Ms Charlotte Anderson completed a basement apartment in Cleckheaton in October 1997. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable flats in Cleckheaton with a long lease were valued around £250,400. The average ground rent payable was £65 billed every twelve months. The lease lapsed on 25 September 2090. Given that there were 64 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of legals.