Redcar leases on residential deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Flat owners in Redcar will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Redcar can be a difficult process. We recommend you procure professional help 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 Redcar lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her first floor flat in Redcar, Poppy initiated the lease extension process as the 80 year mark was quickly advancing. The transaction was concluded in January 2015. The freeholder’s costs were kept to an absolute minimum.
Dr K Ali acquired a studio flat in Redcar in September 1998. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparable properties in Redcar with a long lease were valued about £235,200. The average ground rent payable was £45 invoiced yearly. The lease finished on 16 June 2091. Having 66 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Mr and Mrs. W Bell acquired a garden flat in Redcar in June 2007. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable premises in Redcar with an extended lease were valued around £275,000. The average ground rent payable was £55 billed monthly. The lease terminated in 2102. Given that there were 77 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.