Cannock residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a landlord in Cannock,the lease extension solicitors that we work with will always be willing 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.
Adam owned a conversion flat in Cannock being sold with a lease of just over fifty eight years remaining. Adam on an informal basis contacted his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Adam to invoke his statutory right. Adam obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Mr and Mrs. L Bell owned a studio flat in Cannock in June 2008. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical residencies in Cannock with a long lease were worth £275,000. The average ground rent payable was £45 billed annually. The lease elapsed in 2094. Taking into account 69 years left we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Mr Jacob Lefèvre was assigned a lease of a studio flat in Cannock in November 2002. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical flats in Cannock with a long lease were worth £216,000. The average ground rent payable was £60 billed every twelve months. The lease expired in 2083. Considering the 58 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.