When it comes to domestic leasehold premises in Cleckheaton, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years left. Residents in Cleckheaton with a lease nearing 81 years left should seriously think of extending it sooner as opposed to later. When the lease term has fewer than eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Cleckheaton,the lease extension experts 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.
After lengthy correspondence with the landlord of her studio flat in Cleckheaton, Sarah commenced the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction was finalised in February 2006. The landlord’s fees were restricted to less than 650 GBP.
Mr and Mrs. O Moreau completed a purpose-built flat in Cleckheaton in May 1999. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar flats in Cleckheaton with 100 year plus lease were valued around £206,200. The mid-range ground rent payable was £55 invoiced annually. The lease expiry date was on 21 January 2082. Given that there were 56 years remaining we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.
In 2009 we were approached by Mr and Mrs. G Khan who, having was assigned a lease of a one bedroom apartment in Cleckheaton in February 1995. The question was if we could approximate the price would be to extend the lease by 90 years. Identical premises in Cleckheaton with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected quarterly. The lease expiry date was on 8 April 2102. Given that there were 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.