There is no doubt about it a leasehold flat or house in Canons Park is a wasting asset as a result of the diminishing lease term. If the lease has, over 99 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease sooner than later. Many flat owners in Canons Park will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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. |
Using our service will provide you better control over the value of your Canons Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold owner of a high value flat in Canons Park on the market with a lease of a little over 59 years unexpired. Leon informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon obtained expert advice and secured satisfactory resolution informally and sell the property.
Last Autumn we were approach by Mr and Mrs. A Clark , who completed a first floor apartment in Canons Park in January 1995. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable residencies in Canons Park with a long lease were valued about £240,600. The average ground rent payable was £60 billed every twelve months. The lease elapsed on 16 September 2087. Given that there were 62 years left we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including costs.
Last Christmas we were called by Mr and Mrs. B Wilson , who owned a garden apartment in Canons Park in March 2004. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Identical residencies in Canons Park with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease concluded on 11 April 2076. Considering the 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.