Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Cleobury Mortimer. Clearly, the period of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying leaseholders in Cleobury Mortimer have the right to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give careful attention before putting off your Cleobury Mortimer lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
Leasehold premises in Cleobury Mortimer with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Cleobury Mortimer,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cleobury Mortimer valuers.
Half a year ago Ollie, started to get near to the 80-year threshold with the lease on his ground floor apartment in Cleobury Mortimer. In buying his flat 18 years ago, the lease term was of minimal bearing. by good luck, he became aware that he would imminently be paying an inflated amount for Extending the lease. Ollie arranged for a lease extension just under the wire last March. Ollie and the freeholder ultimately settled on a premium of £6,000 . If he had missed the deadline, the figure would have increased by a minimum £1,075.
Mr Daniel Wilson moved into a basement flat in Cleobury Mortimer in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparative flats in Cleobury Mortimer with a long lease were in the region of £300,000. The mid-range ground rent payable was £50 billed monthly. The lease finished on 27 September 2101. Taking into account 75 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last Autumn we were contacted by Dr W Brooks , who completed a first floor apartment in Cleobury Mortimer in January 2005. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Identical premises in Cleobury Mortimer with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 collected monthly. The lease ended in 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 plus fees.