Cleckheaton leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Cleckheaton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Cleckheaton with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Cleckheaton can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 Cleckheaton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Alex, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Cleckheaton. Having bought his flat two decades ago, the lease term was of minimal relevance. Fortunately, he recognised he would imminently be paying an escalated premium for Extending the lease. Alex extended the lease just under the wire last March. Alex and the landlord ultimately agreed on a premium of £5,500 . If he not met the deadline, the price would have escalated by at least £975.
In 2014 we were phoned by Mrs A Miller who, having was assigned a lease of a purpose-built apartment in Cleckheaton in October 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Cleckheaton with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish in 2091. Having 67 years as a residual term we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.
Mr and Mrs. G Ali was assigned a lease of a ground floor apartment in Cleckheaton in October 2002. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Cleckheaton with 100 year plus lease were worth £201,200. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 27 November 2080. Given that there were 56 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.