The market value of Cramlington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Cramlington with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire Building Society | 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. |
Lease extensions in Cramlington can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cramlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ali owned a studio apartment in Cramlington on the market with a lease of fraction over 72 years remaining. Ali informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Last Spring we were e-mailed by Mr and Mrs. F Clarke , who owned a ground floor flat in Cramlington in February 2008. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparative flats in Cramlington with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease lapsed in 2104. Considering the 78 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.
Mr and Mrs. W Gray owned a purpose-built flat in Cramlington in November 2002. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparative residencies in Cramlington with an extended lease were worth £186,000. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2084. Given that there were 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 exclusive of professional charges.