With a domestic leasehold property in Cramlington, you are actually buying a right to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years left. Anyone in Cramlington with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under eighty years outstanding, under the current Act the landlord is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Cramlington,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cramlington valuers.
Off the back of unsuccessful correspondence with the freeholder of her ground floor apartment in Cramlington, Katherine initiated the lease extension process just as the lease was nearing the crucial 80-year mark. The legal work was concluded in July 2015. The freeholder’s costs were kept to an absolute minimum.
Mr V Sharif moved into a basement apartment in Cramlington in October 1995. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable residencies in Cramlington with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated in 2092. Given that there were 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
Last Christmas we were approach by Mr and Mrs. W Fournier , who acquired a garden flat in Cramlington in November 2004. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparable homes in Cramlington with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed annually. The lease ran out on 2 June 2103. Taking into account 77 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including expenses.