For those whose Cleckheaton flat is held on a long lease, the message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension.
Leasehold properties in Cleckheaton with in excess of one hundred years outstanding 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Cleckheaton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cleckheaton valuers.
Following protracted correspondence with the landlord of her purpose-built apartment in Cleckheaton, Paige initiated the lease extension process as the eighty year mark was swiftly approaching. The legal work was concluded in October 2006. The landlord’s costs were negotiated to slightly above 700 pounds.
In 2010 we were e-mailed by Mrs T Carter who, having completed a one bedroom flat in Cleckheaton in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Cleckheaton with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 invoiced monthly. The lease concluded on 18 September 2099. Given that there were 74 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Dr P Ali moved into a one bedroom flat in Cleckheaton in September 2009. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Cleckheaton with a long lease were worth £243,000. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 16 August 2088. Taking into account 63 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.