Cranfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Cranfield enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cranfield you must check if your lease has between 70 and ninety years left. There are compelling reasons why a Cranfield flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold premises in Cranfield with in excess of 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cranfield can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 Cranfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Milo, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Cranfield. Having purchased his property two decades ago, the unexpired term was of minimal significance. Luckily, he realised he needed to take action soon on a lease extension. Milo was able to extend his lease just under the wire last June. Milo and the freeholder via the management company in the end agreed on a premium of £5,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £950.
Ms Emily Davies owned a first floor apartment in Cranfield in October 2002. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparative homes in Cranfield with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease lapsed in 2095. Taking into account 70 years left we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus fees.
In 2010 we were contacted by Dr Lucas Laurent who, having acquired a one bedroom flat in Cranfield in February 2011. We are asked if we could approximate the price could be to extend the lease by ninety years. Comparable flats in Cranfield with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 collected per annum. The lease terminated on 22 May 2075. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 not including fees.