The re-sale value of a leasehold property in Creekmouth depends on how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year mark. Current legislation enables Creekmouth qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Creekmouth with more than one hundred 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Creekmouth 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 conveyancing solicitor we work with provide it.
Off the back of unsuccessful discussions with the landlord of her two bedroom apartment in Creekmouth, Alexandra commenced the lease extension process as the eighty year deadline was fast advancing. The lease extension completed in May 2006. The landlord’s costs were kept to an absolute minimum.
Mrs L Bennett moved into a basement flat in Creekmouth in August 1998. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Creekmouth with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2096. Given that there were 70 years unexpired we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Creekmouth property is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The number of years remaining on the existing lease(s) was 69.77 years.