The re-sale value of a leasehold property in Canons Park depends on how long the lease has left to run. If it is near to or less than eighty years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the 80 year cut off point. Current legislation enables Canons Park qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Canons Park with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Canons Park can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 in-depth market knowledge procuring Canons Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the freeholder of her leasehold apartment in Canons Park, Chloe initiated the lease extension process as the eighty year threshold was fast coming. The lease extension was concluded in July 2015. The landlord’s fees were negotiated to under 550 pounds.
Last month we were called by Dr Max André , who completed a recently refurbished apartment in Canons Park in August 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Canons Park with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed in 2105. Taking into account 79 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last Summer we were approach by Mr and Mrs. O Mercier , who completed a garden apartment in Canons Park in February 1996. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in Canons Park with 100 year plus lease were valued around £275,000. The average ground rent payable was £65 invoiced per annum. The lease termination date was on 5 June 2094. Considering the 68 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.