Canons Park leases on domestic deteriorating in value. Where your lease has approximately ninety 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 your lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher amount will be due. Leasehold owners in Canons Park will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Canons Park 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.
Last year Kai, came perilously near to the eighty-year mark with the lease on his ground floor flat in Canons Park. In buying his flat twenty years previously, the length of the lease was of no significance. Luckily, he realised he needed to take action soon on Extending the lease. Kai was able to extend his lease just under the wire in September. Kai and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £1,075.
Last Summer we were called by Mr Jonathan Jones , who completed a one bedroom flat in Canons Park in July 2002. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Similar residencies in Canons Park with 100 year plus lease were worth £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish in 2092. Considering the 67 years as a residual term we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus legals.
Last Summer we were called by Dr Jude Hill , who bought a purpose-built flat in Canons Park in May 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Comparable premises in Canons Park with a long lease were worth £206,200. The mid-range amount of ground rent was £55 collected annually. The lease expired on 21 October 2081. Considering the 56 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.