With a domestic leasehold property in North Cave, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years left. Residents in North Cave with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
Leasehold premises in North Cave with more than one hundred years remaining 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 purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your North Cave leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan was the the leasehold owner of a 2 bedroom apartment in North Cave on the market with a lease of a few days over sixty years left. Jonathan informally contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were approach by Mr P Vincent , who acquired a ground floor apartment in North Cave in September 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Identical flats in North Cave with an extended lease were worth £191,000. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2083. Having 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of expenses.
Last Spring we were contacted by Ms W Robinson , who bought a basement flat in North Cave in April 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative homes in North Cave with 100 year plus lease were worth £250,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish in 2094. Having 69 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.