When it comes to residential leasehold property in Cranfield, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Cranfield with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under 80 years outstanding, under the relevant Act the landlord can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | 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 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancers that we work with undertake Cranfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last Christmas Liam, started to get near to the 80-year threshold with the lease on his studio apartment in Cranfield. Having bought his home two decades ago, the length of the lease was of minimal importance. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. Liam was able to extend his lease just ahead of time last August. Liam and the freeholder via the management company ultimately agreed on an amount of £5,500 . If the lease had descended below eighty years, the figure would have escalated by a minimum £1,100.
In 2011 we were contacted by Ms Jodie Mercier who, having completed a studio apartment in Cranfield in May 2003. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Cranfield with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 billed monthly. The lease ended in 2103. Given that there were 77 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Mr Leon Ward owned a studio flat in Cranfield in May 2012. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparative residencies in Cranfield with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 9 April 2083. Taking into account 57 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.