Unfortunately 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 not fully appreciated in the early years due to the reduction being disguised by increases in the North Cave property market.Where your lease has approximately ninety years left, you should 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 slips below eighty years - otherwise a higher premium will be payable. Most flat owners in North Cave will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in North Cave with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in North Cave can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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.
Trailing lengthy negotiations with the freeholder of her ground floor flat in North Cave, Daisy started the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction completed in February 2007. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were called by Mr C Morris who, having owned a basement flat in North Cave in July 2005. The question was if we could estimate the premium could be to extend the lease by 90 years. Comparative properties in North Cave with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 13 October 2098. Having 72 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Spring we were called by Mr F Jones , who bought a basement apartment in North Cave in April 2007. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in North Cave with a long lease were in the region of £261,600. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 21 November 2078. Having 52 years unexpired we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus fees.