Cleethorpes leases on residential properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Cleethorpes will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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 |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Last year Adam, came perilously near to the 80-year mark with the lease on his one bedroom flat in Cleethorpes. Having bought his flat two decades ago, the length of the lease was of no importance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Adam was able to extend his lease at the eleventh hour last September. Adam and the landlord subsequently settled on the final figure of £6,000 . If he had missed the deadline, the premium would have become more exhorbitant by a minimum £925.
Last Christmas we were phoned by Dr Ben Kelly , who owned a newly refurbished apartment in Cleethorpes in August 2001. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparative properties in Cleethorpes with an extended lease were valued around £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease concluded on 9 March 2102. Having 76 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
Last Autumn we were called by Dr F Ali , who purchased a studio flat in Cleethorpes in October 1996. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar properties in Cleethorpes with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 collected quarterly. The lease terminated on 11 September 2082. Considering the 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 not including professional charges.