Cleckheaton leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to be in place before the term of the existing lease drops below eighty years - otherwise a higher amount will be payable. Leasehold owners in Cleckheaton will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Cleckheaton with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| Halifax | 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. |
Retaining our service gives you enhanced control over the value of your Cleckheaton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago George, started to get near to the 80-year mark with the lease on his two bedroom apartment in Cleckheaton. Having purchased his flat two decades ago, the length of the lease was of minimal significance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. George was able to extend his lease at the eleventh hour in June. George and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had fallen lower than eighty years, the premium would have escalated by at least £1,050.
Mr T Lambert was assigned a lease of a first floor apartment in Cleckheaton in April 1998. The question was if we could approximate the price would be for a 90 year lease extension. Similar homes in Cleckheaton with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected per annum. The lease finished on 3 July 2083. Considering the 58 years left we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.
Last Winter we were contacted by Ms Millie Anderson , who purchased a basement flat in Cleckheaton in March 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative residencies in Cleckheaton with a long lease were valued around £200,000. The average ground rent payable was £50 billed every twelve months. The lease concluded in 2103. Given that there were 78 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of expenses.