The only way is down when it comes to South Cave lease terms. South Cave leaseholds that have a lease term less than than 80 years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you enhanced control over the value of your South Cave leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the freeholder of her basement apartment in South Cave, Danielle started the lease extension process as the eighty year mark was quickly advancing. The lease extension was concluded in January 2006. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were approach by Dr Nicole Michel , who owned a garden flat in South Cave in August 1995. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in South Cave with an extended lease were worth £193,400. The mid-range ground rent payable was £65 collected quarterly. The lease expired in 2085. Taking into account 59 years outstanding we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including legals.
In 2011 we were contacted by Mr M Rose who, having completed a ground floor flat in South Cave in July 2005. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Comparable properties in South Cave with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2096. Given that there were 70 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of costs.