Cross Hands leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Cross Hands will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Cross Hands with over 100 years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you enhanced control over the value of your Cross Hands leasehold, as your property will be more valuable and saleable 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.
Subsequent to protracted negotiations with the freeholder of her purpose-built flat in Cross Hands, Robyn started the lease extension process just as the lease was nearing the all-important eighty-year mark. The transaction completed in September 2014. The landlord’s charges were kept to an absolute minimum.
Dr N Thomas was assigned a lease of a one bedroom flat in Cross Hands in February 2008. We are asked if we could approximate the premium would be to extend the lease by 90 years. Similar residencies in Cross Hands with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease expired in 2102. Taking into account 76 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2011 we were contacted by Mr and Mrs. P Thompson who, having was assigned a lease of a one bedroom flat in Cross Hands in January 2000. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Identical properties in Cross Hands with an extended lease were worth £176,200. The average ground rent payable was £65 invoiced per annum. The lease finished in 2082. Given that there were 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £29,500 and £34,000 plus expenses.