Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Cramlington. Clearly, the length of lease left shortens over time. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Cramlington have the right to extend the lease for an additional ninety years in accordance with statute. You should give careful deliberation before putting off your Cramlington lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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 Cramlington 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.
Following lengthy correspondence with the freeholder of her ground floor flat in Cramlington, Morgan initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in March 2012. The landlord’s fees were restricted to about 450 GBP.
In 2012 we were phoned by Dr Freddie Lefèvre who, having purchased a studio flat in Cramlington in November 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Cramlington with an extended lease were worth £176,200. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2081. Taking into account 56 years as a residual term we estimated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of legals.
In 2010 we were approached by Mr and Mrs. A Allen who, having took over the lease of a ground floor flat in Cramlington in May 2001. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Cramlington with a long lease were valued around £237,600. The mid-range ground rent payable was £45 invoiced per annum. The lease ran out on 7 November 2092. Having 67 years remaining we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.