When it comes to domestic leasehold property in Cannock, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Cannock with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When the lease term has under eighty years left, under the relevant statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Cannock with more than 100 years remaining on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Cannock 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 conveyancing solicitor we work with provide it.
After lengthy negotiations with the landlord of her basement apartment in Cannock, Olivia initiated the lease extension process as the 80 year threshold was quickly advancing. The lease extension was concluded in March 2008. The freeholder’s fees were negotiated to below 600 GBP.
Last October we were contacted by Ms Daisy Jones , who took over the lease of a garden apartment in Cannock in January 2006. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in Cannock with a long lease were in the region of £250,400. The average ground rent payable was £65 collected every twelve months. The lease finished in 2089. Given that there were 64 years left we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including legals.
Last month we were e-mailed by Dr B Anderson , who acquired a recently refurbished apartment in Cannock in June 2008. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative premises in Cannock with 100 year plus lease were worth £184,000. The average ground rent payable was £55 invoiced every twelve months. The lease expired in 2078. Taking into account 53 years left we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.