As the length of the unexpired term of a Cannington residential lease diminished so does its value and therefore the value of your property. If the lease has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Cannington will qualify for this right; however a lawyer will be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with procure Cannington 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.
16 months ago Aiden, started to get near to the 80-year mark with the lease on his first floor apartment in Cannington. In buying his flat two decades ago, the lease term was of minimal interest. by good luck, it dawned on him that he would soon be paying an inflated amount for a lease extension. Aiden was able to extend his lease just ahead of time in July. Aiden and the landlord who owned the flat above ultimately agreed on a premium of £5,500 . If the lease had slipped below eighty years, the amount would have increased by at least £1,150.
Last month we were phoned by Mr Jacob Morgan , who owned a purpose-built apartment in Cannington in September 1997. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Comparable homes in Cannington with an extended lease were worth £200,800. The average amount of ground rent was £65 billed annually. The lease expiry date was on 16 January 2086. Considering the 60 years as a residual term we estimated the premium to the landlord to extend the lease to be between £20,900 and £24,200 exclusive of costs.
In 2009 we were e-mailed by Mrs N Edwards who, having acquired a studio apartment in Cannington in January 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical properties in Cannington with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 8 May 2097. Taking into account 71 years remaining we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.