When it comes to domestic leasehold premises in Canford Cliffs, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly once there are fewer than eighty years left. Residents in Canford Cliffs with a lease drawing near to 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years left, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Canford Cliffs with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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 |
Lease extensions in Canford Cliffs can be a difficult process. We recommend you secure guidance from a conveyancer 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 a wealth of experience dealing with Canford Cliffs lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Harvey, started to get near to the eighty-year mark with the lease on his purpose- built flat in Canford Cliffs. Having purchased his property 18 years previously, the lease term was of no importance. As luck would have it, he noticed he needed to take action soon on a lease extension. Harvey arranged for a lease extension at the eleventh hour in July. Harvey and the freeholder via the management company in the end agreed on sum of £6,000 . If the lease had slid below eighty years, the premium would have escalated by a minimum £1,100.
Mr and Mrs. A Hernández bought a first floor apartment in Canford Cliffs in October 1998. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Canford Cliffs with 100 year plus lease were valued about £250,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2094. Considering the 68 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Mr and Mrs. Y Lefebvre purchased a studio flat in Canford Cliffs in July 2000. The dilemma was if we could approximate the price would be for a ninety year lease extension. Identical properties in Canford Cliffs with 100 year plus lease were worth £285,000. The average amount of ground rent was £55 collected every twelve months. The lease concluded in 2105. Considering the 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.