Cleveleys leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher amount will be payable. Flat owners in Cleveleys will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Cleveleys leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Callum, came precariously near to the 80-year mark with the lease on his ground floor flat in Cleveleys. In buying his property two decades ago, the length of the lease was of little significance. As luck would have it, he realised he would soon be paying way over the odds for Extending the lease. Callum arranged for a lease extension just under the wire last August. Callum and the freeholder eventually settled on an amount of £5,500 . If the lease had slipped lower than 80 years, the figure would have become more exhorbitant by a minimum £1,000.
Last Winter we were approach by Dr G White , who purchased a studio flat in Cleveleys in February 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Cleveleys with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected every twelve months. The lease terminated on 6 April 2080. Having 54 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.
Dr Reuben Parker moved into a one bedroom apartment in Cleveleys in September 1998. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical homes in Cleveleys with an extended lease were worth £227,800. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded on 25 August 2091. Taking into account 65 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including professional charges.