Cross Hands leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Cross Hands enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cross Hands you should investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Cross Hands leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the freeholder of her ground floor apartment in Cross Hands, Laura commenced the lease extension process as the 80 year deadline was quickly coming. The lease extension was finalised in November 2005. The freeholder’s costs were restricted to below 700 pounds.
In 2012 we were e-mailed by Dr Caitlin Walker who, having acquired a one bedroom apartment in Cross Hands in May 2002. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Comparative properties in Cross Hands with a long lease were valued about £265,000. The average ground rent payable was £55 billed quarterly. The lease elapsed on 4 June 2099. Taking into account 74 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
Dr Hugo Richardson bought a purpose-built flat in Cross Hands in November 2007. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Identical premises in Cross Hands with an extended lease were worth £166,400. The average amount of ground rent was £60 collected monthly. The lease came to a finish in 2079. Having 54 years outstanding we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.