Cross Keys residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Cross Keys with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Cross Keys can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Cross Keys lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold owner of a 2 bedroom flat in Cross Keys on the market with a lease of fraction over 72 years remaining. Felix informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mr Liam Brooks purchased a garden apartment in Cross Keys in July 2004. The question was if we could estimate the premium could be for a 90 year lease extension. Identical residencies in Cross Keys with an extended lease were worth £208,200. The mid-range ground rent payable was £65 billed annually. The lease finished in 2087. Taking into account 61 years left we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
Mr and Mrs. F Clarke completed a one bedroom flat in Cross Keys in October 2012. We are asked if we could approximate the premium would be to extend the lease by 90 years. Comparative homes in Cross Keys with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out on 13 August 2098. Considering the 72 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.