For anyone whose Creekmouth property is held on a long lease, the message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold properties in Creekmouth with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Creekmouth leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Teddy, started to get close to the 80-year threshold with the lease on his leasehold flat in Creekmouth. Having bought his flat two decades ago, the unexpired term was of no bearing. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Teddy was able to extend his lease at the eleventh hour in May. Teddy and the freeholder ultimately agreed on sum of £6,000 . If the lease had gone to less than 80 years, the price would have increased by at least £1,075.
Last Christmas we were e-mailed by Mr I Bell , who purchased a ground floor flat in Creekmouth in March 2007. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparative residencies in Creekmouth with an extended lease were worth £191,000. The average ground rent payable was £65 billed yearly. The lease elapsed in 2084. Considering the 58 years remaining we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus legals.
An example of a Lease Extension case for a Creekmouth premises 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 unexpired residue of the current lease was 69.77 years.