With a long leasehold premises in Cleckheaton, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Cleckheaton with a lease nearing 81 years remaining should seriously consider extending it sooner than later. When the lease term has under 80 years left, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Cleckheaton with in excess of 100 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Using our service gives you enhanced control over the value of your Cleckheaton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Stanley was the the leasehold owner of a 2 bedroom apartment in Cleckheaton being marketed with a lease of a little over sixty years left. Stanley on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Ms G Bell purchased a garden apartment in Cleckheaton in November 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Cleckheaton with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated in 2077. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Last Christmas we were called by Dr Rebecca Allen , who took over the lease of a first floor apartment in Cleckheaton in July 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar premises in Cleckheaton with an extended lease were valued around £285,000. The average ground rent payable was £45 invoiced per annum. The lease ran out in 2097. Having 71 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.