The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cricklade have the right to extend the lease for an additional ninety years under legislation. Do think carefully before delaying your Cricklade lease extension. Shelving that expense now simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold residencies in Cricklade with in excess of one hundred years unexpired 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Cricklade,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cricklade valuers.
After lengthy negotiations with the landlord of her one bedroom apartment in Cricklade, Abigail commenced the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension completed in March 2011. The landlord’s costs were restricted to below 450 pounds.
Last July we were phoned by Mr P Kelly , who completed a one bedroom apartment in Cricklade in August 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative properties in Cricklade with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out in 2095. Given that there were 69 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
In 2010 we were phoned by Mr and Mrs. Y Simon who, having completed a one bedroom flat in Cricklade in July 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Cricklade with an extended lease were valued about £285,000. The average ground rent payable was £55 invoiced quarterly. The lease termination date was in 2106. Having 80 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.