With a long leasehold property in Cannock, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Cannock with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has less than eighty years remaining, under the relevant legislation the landlord can calculate and charge a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Cannock with in excess of one hundred years unexpired 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Cannock can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Cannock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John was the the leasehold owner of a 2 bedroom apartment in Cannock on the market with a lease of just over 61 years left. John on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last October we were phoned by Ms C Bernard , who acquired a one bedroom flat in Cannock in August 2012. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable premises in Cannock with a long lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease terminated on 14 January 2101. Given that there were 76 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Mr and Mrs. W Fournier completed a newly refurbished apartment in Cannock in February 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Cannock with an extended lease were valued around £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease ended on 23 January 2090. Taking into account 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 not including costs.