The only way is down when it comes to Canford Heath lease terms. Canford Heath properties that have a remaining term fewer than 80 years will reduce in market price even faster, and the cost of extending your lease will increase.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Canford Heath leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Seth owned a 2 bedroom apartment in Canford Heath on the market with a lease of a little over sixty years outstanding. Seth informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
In 2012 we were contacted by Ms L Lambert who, having purchased a first floor flat in Canford Heath in November 2007. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar residencies in Canford Heath with a long lease were worth £227,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2090. Given that there were 65 years outstanding we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
In 2013 we were contacted by Mr V Carter who, having owned a first floor apartment in Canford Heath in June 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Canford Heath with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 collected annually. The lease elapsed on 23 May 2101. Taking into account 76 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.