Creekmouth leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Creekmouth will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Creekmouth,the lease extension experts 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 Creekmouth valuers.
During the course of the last few months Ryan, started to get close to the eighty-year threshold with the lease on his first floor flat in Creekmouth. Having purchased his home two decades ago, the unexpired term was of no bearing. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Ryan was able to extend his lease at the eleventh hour in May. Ryan and the freeholder in the end agreed on a premium of £5,000 . If he had missed the deadline, the amount would have gone up by a minimum £875.
Last Winter we were called by Mr and Mrs. I Wood , who took over the lease of a one bedroom flat in Creekmouth in September 2003. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar homes in Creekmouth with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 9 August 2100. Having 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension decision 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 was in relation to 1 flat. The unexpired term as at the valuation date was 69.77 years.