Canons Park leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Canons Park will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent 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 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Canons Park leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Hugo, came critically close to the 80-year mark with the lease on his two bedroom flat in Canons Park. In buying his home 19 years previously, the length of the lease was of no relevance. Luckily, he recognised he needed to take action soon on Extending the lease. Hugo was able to extend his lease at the eleventh hour in September. Hugo and the landlord who owned the flat above eventually agreed on sum of £6,000 . If the lease had slid to less than 80 years, the figure would have increased by a minimum £1,050.
Last Christmas we were approach by Dr L Smith , who bought a one bedroom apartment in Canons Park in March 2002. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Canons Park with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease elapsed in 2098. Taking into account 72 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2014 we were contacted by Mr and Mrs. D Hall who, having owned a garden apartment in Canons Park in August 2010. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Canons Park with a long lease were in the region of £233,200. The average amount of ground rent was £60 billed annually. The lease terminated on 6 November 2087. Given that there were 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus fees.