It’s a harsh certainty that a North Cave residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the North Cave property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be due. The majority of flat owners in North Cave will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in North Cave can be a difficult process. We recommend you obtain guidance from a conveyancer 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 in-depth market knowledge procuring North Cave lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Lucas, came dangerously close to the 80-year mark with the lease on his one bedroom flat in North Cave. In buying his property 18 years previously, the unexpired term was of minimal concern. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Lucas extended the lease just under the wire in September. Lucas and the freeholder via the management company in the end settled on a premium of £6,000 . If he not met the deadline, the amount would have gone up by a minimum £1,050.
Last Winter we were called by Mr K Reed , who owned a purpose-built flat in North Cave in September 2009. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Identical homes in North Cave with a long lease were in the region of £200,800. The average ground rent payable was £65 billed yearly. The lease terminated on 10 October 2086. Given that there were 60 years left we calculated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 not including professional charges.
Mr and Mrs. I González was assigned a lease of a one bedroom flat in North Cave in October 2009. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative residencies in North Cave with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease ended in 2097. Given that there were 71 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.