The re-sale value of a leasehold property in Creekmouth is impacted by how many years the lease has remaining. If it is near to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years to run so that formalities can be concluded in advance of the eighty year cut off point. Statute entitles Creekmouth qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Creekmouth with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Creekmouth can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Creekmouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Stanley, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Creekmouth. In buying his flat 19 years ago, the unexpired term was of little significance. Thankfully, he noticed he needed to take action soon on a lease extension. Stanley was able to extend his lease at the eleventh hour last August. Stanley and the landlord subsequently settled on an amount of £6,000 . If the lease had dropped lower than 80 years, the premium would have escalated by a minimum £850.
Mr and Mrs. E Richardson acquired a basement apartment in Creekmouth in April 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Creekmouth with a long lease were valued about £242,600. The average ground rent payable was £45 invoiced yearly. The lease lapsed in 2093. Having 67 years outstanding we approximated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Creekmouth residence 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 related to 1 flat. The remaining number of years on the lease was 69.77 years.