It’s a harsh truth that a Cannington residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cannington property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term falls under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Cannington will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cannington can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cannington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Toby, came critically near to the eighty-year threshold with the lease on his purpose- built apartment in Cannington. In buying his property twenty years previously, the length of the lease was of little significance. by good luck, he realised he would imminently be paying way over the odds for a lease extension. Toby was able to extend his lease at the eleventh hour last August. Toby and the freeholder eventually settled on the final figure of £5,500 . If he not met the deadline, the figure would have increased by at least £1,125.
Dr S Roux owned a first floor apartment in Cannington in March 1996. The question was if we could approximate the premium could be to prolong the lease by ninety years. Comparable premises in Cannington with an extended lease were in the region of £264,000. The average ground rent payable was £60 invoiced annually. The lease concluded in 2078. Considering the 53 years unexpired we calculated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including fees.
In 2012 we were contacted by Dr Poppy Thomas who, having bought a garden apartment in Cannington in June 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar properties in Cannington with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 collected monthly. The lease came to a finish on 15 January 2089. Having 64 years unexpired we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus professional charges.