Chances are that where you own a flat in Cleethorpes you actually own a long leasehold interest over your property
Leasehold properties in Cleethorpes with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with handle Cleethorpes 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 lawyer we work with provide it.
In the wake of eight months of lengthy discussions with the landlord of her one bedroom flat in Cleethorpes, Kirsty commenced the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was finalised in June 2006. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were approached by Dr L Walker who, having took over the lease of a ground floor flat in Cleethorpes in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Cleethorpes with an extended lease were valued around £246,800. The average ground rent payable was £60 billed monthly. The lease elapsed in 2075. Given that there were 50 years remaining we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.
Mr Ali Martínez purchased a one bedroom flat in Cleethorpes in November 2008. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Cleethorpes with 100 year plus lease were valued around £208,200. The mid-range ground rent payable was £65 billed per annum. The lease concluded in 2086. Taking into account 61 years remaining we estimated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 exclusive of costs.