For anyone whose Cross Hands flat is held on a long lease, our message is clear – if nothing is done, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
Leasehold premises in Cross Hands with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
Using our service gives you increased control over the value of your Cross Hands leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a high value flat in Cross Hands being sold with a lease of a few days over 61 years remaining. Connor informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Mrs J Petit bought a studio apartment in Cross Hands in August 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical homes in Cross Hands with an extended lease were valued about £183,600. The mid-range ground rent payable was £65 collected yearly. The lease concluded in 2081. Taking into account 57 years outstanding we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including expenses.
Last Summer we were phoned by Dr Abigail Moore , who completed a studio flat in Cross Hands in November 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Cross Hands with an extended lease were in the region of £245,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed on 3 November 2092. Having 68 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.