Canons Park leases on residential deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Canons Park will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Freddie was the the leasehold proprietor of a 2 bedroom apartment in Canons Park on the market with a lease of a few days over fifty eight years left. Freddie informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were phoned by Dr S Moore , who purchased a newly refurbished flat in Canons Park in October 2003. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Canons Park with a long lease were valued about £189,000. The mid-range ground rent payable was £55 billed annually. The lease terminated on 5 April 2079. Having 53 years left we approximated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.
Last May we were contacted by Dr Melissa Hall , who was assigned a lease of a ground floor apartment in Canons Park in May 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparable properties in Canons Park with an extended lease were valued about £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease end date was in 2099. Having 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.