When it comes to domestic leasehold property in Cross Hands, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Leasehold owners in Cross Hands with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once a lease has less than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Cross Hands can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Cross Hands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a conversion apartment in Cross Hands on the market with a lease of a little over 61 years left. Connor informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr A Petit was assigned a lease of a one bedroom flat in Cross Hands in May 2007. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Similar properties in Cross Hands with an extended lease were valued about £183,600. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2083. Given that there were 57 years unexpired we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
In 2013 we were phoned by Dr Alfie Girard who, having owned a garden apartment in Cross Hands in September 1997. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Identical flats in Cross Hands with an extended lease were in the region of £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated on 14 February 2094. Having 68 years left we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.