Canford Heath 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 gets more expensive. It is the case that most Canford Heath tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Canford Heath you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle 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.
Alex owned a studio flat in Canford Heath on the market with a lease of a few days over 59 years left. Alex on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Alex to invoke his statutory right. Alex obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last year we were contacted by Dr J Simon , who moved into a basement flat in Canford Heath in October 2001. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar flats in Canford Heath with a long lease were in the region of £260,000. The average ground rent payable was £50 billed quarterly. The lease ran out on 8 July 2097. Having 72 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Mrs Y Brooks took over the lease of a one bedroom apartment in Canford Heath in June 2012. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparative premises in Canford Heath with an extended lease were valued around £256,600. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2077. Considering the 52 years left we approximated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 not including expenses.