When it comes to residential leasehold premises in Canford Heath, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern 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 a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years left. Anyone in Canford Heath with a lease nearing 81 years remaining should seriously consider extending it sooner than later. When the lease term has below 80 years left, under the relevant statute the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Canford Heath with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancers that we work with procure Canford Heath 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 conveyancer we work with provide it.
Caleb owned a high value apartment in Canford Heath on the market with a lease of a little over 59 years unexpired. Caleb on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Ms D Girard completed a first floor apartment in Canford Heath in August 2012. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Similar homes in Canford Heath with an extended lease were valued around £275,000. The average ground rent payable was £55 billed monthly. The lease termination date was on 17 June 2103. Taking into account 77 years unexpired we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.
Last January we were contacted by Dr Aarav Michel , who owned a garden apartment in Canford Heath in October 2003. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Identical flats in Canford Heath with 100 year plus lease were valued around £183,600. The average amount of ground rent was £65 collected every twelve months. The lease finished in 2083. Given that there were 57 years as a residual term we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.