Cranfield Lease Extension - Free Consultation

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Why you should commence your Cranfield lease extension


Main reasons to start your Cranfield lease extension today:

Increase your lease and increase your Cranfield property value

Unfortunately that a Cranfield residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cranfield property market.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. Most flat owners in Cranfield will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.

An extended lease is almost the same value as a freehold

It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.

Lending institutions may decide not to loan monies on a short lease

Mortgage companies are really restricting their approach as regards to homes in Cranfield with short leases. For instance you may find that their lending requirements are stricter and that they adjust interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so if you needed to sell, your remaining options would be to find a cash purchaser, or hope for the best at auction thus limiting your market.

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.
Coventry Building Society 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.
Santander You must report the unexpired lease term to us and await our instructions if:
1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or
2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or
3. no valuation report is provided
However, we will not accept a lease where on expiry of the mortgage:
(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or
(ii) less than 30 years remain and the loan is repaid on a capital and interest basis

We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder.
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

Why use us for your lease extension in Cranfield?

Lease extensions in Cranfield can be a difficult process. We recommend you procure guidance 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 dealing with Cranfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cranfield Lease Extension Case Studies:

Nathan, Cranfield, Bedfordshire

18 months ago Nathan, started to get near to the 80-year threshold with the lease on his first floor apartment in Cranfield. In buying his home two decades ago, the lease term was of little interest. Fortunately, he realised he needed to take steps soon on Extending the lease. Nathan extended the lease just ahead of time last March. Nathan and the landlord who owned the flat above eventually settled on an amount of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £925.

Cranfield case:

Last Spring we were approach by Mr and Mrs. D Peterson , who purchased a one bedroom flat in Cranfield in June 1999. The question was if we could approximate the price could be for a 90 year lease extension. Identical flats in Cranfield with 100 year plus lease were valued about £166,400. The mid-range ground rent payable was £60 invoiced yearly. The lease finished on 16 September 2078. Taking into account 54 years unexpired we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.

Cranfield case:

Last Summer we were contacted by Dr Seth Hill , who acquired a first floor flat in Cranfield in January 2011. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparative properties in Cranfield with an extended lease were worth £227,800. The average ground rent payable was £45 collected every twelve months. The lease ran out on 19 July 2089. Given that there were 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.