Cannock leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Cannock will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Cannock,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cannock valuers.
After lengthy discussions with the freeholder of her ground floor flat in Cannock, Bethan initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was concluded in July 2014. The landlord’s fees were negotiated to under 650 pounds.
Last Autumn we were phoned by Mr Tyler Young , who moved into a ground floor apartment in Cannock in August 2000. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative properties in Cannock with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed monthly. The lease lapsed in 2100. Taking into account 74 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.
In 2014 we were called by Dr Alex Miller who, having acquired a studio flat in Cannock in August 1996. We are asked if we could estimate the premium could be for a ninety year lease extension. Identical premises in Cannock with 100 year plus lease were valued about £243,000. The average amount of ground rent was £65 collected monthly. The lease came to a finish in 2089. Given that there were 63 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.