Cranfield leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Cranfield will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cranfield with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| The Mortgage Works |
Retaining our service will provide you enhanced control over the value of your Cranfield leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her two bedroom apartment in Cranfield, Morgan commenced the lease extension process as the 80 year mark was fast coming. The legal work was finalised in April 2008. The freeholder’s charges were kept to an absolute minimum.
Dr K Davis took over the lease of a studio flat in Cranfield in March 2001. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative premises in Cranfield with an extended lease were worth £186,000. The average amount of ground rent was £65 collected quarterly. The lease came to a finish in 2084. Having 58 years left we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 plus legals.
In 2014 we were e-mailed by Mr and Mrs. V Nelson who, having owned a first floor apartment in Cranfield in February 2010. The dilemma was if we could estimate the premium could be to prolong the lease by ninety years. Identical premises in Cranfield with an extended lease were in the region of £250,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 9 October 2095. Taking into account 69 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.