It’s a harsh certainty that a Canford Heath residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Canford Heath property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Canford Heath will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Canford Heath can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 Canford Heath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her purpose-built apartment in Canford Heath, Samantha started the lease extension process as the eighty year mark was fast approaching. The legal work was concluded in April 2011. The landlord’s charges were restricted to approximately five hundred GBP.
Last Winter we were phoned by Dr Ollie Gunderson , who was assigned a lease of a newly refurbished apartment in Canford Heath in January 2010. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical flats in Canford Heath with a long lease were worth £200,800. The average ground rent payable was £65 collected per annum. The lease ended in 2085. Having 60 years remaining we calculated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including fees.
Last Spring we were e-mailed by Mr and Mrs. M Girard , who was assigned a lease of a recently refurbished flat in Canford Heath in February 1996. The question was if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative flats in Canford Heath with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2096. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.