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 the lease becomes more expensive. It is the case that most Canford Heath tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Canford Heath you really ought to see if your lease has between seventy and 90 years remaining. There are compelling reasons why a Canford Heath flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using 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 wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel was the the leasehold owner of a 2 bedroom flat in Canford Heath on the market with a lease of just over fifty eight years outstanding. Daniel on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2011 we were approached by Ms S Bell who, having purchased a basement apartment in Canford Heath in September 2000. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Canford Heath with an extended lease were in the region of £254,200. The average ground rent payable was £60 invoiced annually. The lease concluded on 13 February 2077. Given that there were 51 years unexpired we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.
Last Spring we were called by Dr F Díaz , who acquired a one bedroom apartment in Canford Heath in October 1997. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Canford Heath with an extended lease were in the region of £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease came to a finish on 17 November 2088. Taking into account 62 years outstanding we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.