Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Canford Heath. Clearly, the length of lease remaining shortens over time. This may slip by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible leaseholders in Canford Heath have the right to extend the lease for a further ninety years in accordance with legislation. You should give careful attention before putting off your Canford Heath lease extension. Putting off that expense now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Canford Heath with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake 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 lawyer we work with provide it.
Last October Eli, came dangerously close to the eighty-year threshold with the lease on his garden apartment in Canford Heath. In buying his flat two decades ago, the lease term was of no importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Eli extended the lease just in the nick of time last April. Eli and the landlord eventually settled on a premium of £6,000 . If the lease had dropped lower than 80 years, the premium would have escalated by a minimum £850.
Last month we were phoned by Mr and Mrs. J Gray , who completed a recently refurbished flat in Canford Heath in November 2008. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar residencies in Canford Heath with 100 year plus lease were worth £264,000. The average ground rent payable was £60 invoiced quarterly. The lease terminated in 2078. Considering the 53 years left we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of fees.
Last Spring we were phoned by Ms E Anderson , who purchased a studio flat in Canford Heath in September 2010. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative residencies in Canford Heath with 100 year plus lease were valued about £220,400. The mid-range ground rent payable was £45 invoiced quarterly. The lease came to a finish on 8 November 2089. Taking into account 64 years remaining we approximated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of expenses.