Cleckheaton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Cleckheaton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cleckheaton you really ought to investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers 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 conveyancing solicitor we work with provide it.
In the wake of 6 months of lengthy correspondence with the freeholder of her one bedroom flat in Cleckheaton, Mia started the lease extension process just as the lease was nearing the critical eighty-year mark. The lease extension completed in March 2006. The landlord’s costs were restricted to about 550 GBP.
Dr Lauren David purchased a ground floor flat in Cleckheaton in August 1996. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Cleckheaton with a long lease were in the region of £233,200. The average amount of ground rent was £60 collected yearly. The lease expired on 4 April 2087. Having 61 years left we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 exclusive of expenses.
In 2010 we were e-mailed by Mrs Sarah Collins who, having acquired a garden apartment in Cleckheaton in February 2007. The dilemma 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 homes in Cleckheaton with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 billed yearly. The lease finished in 2076. Having 50 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of fees.