Canterbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Canterbury residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Canterbury you should check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Canterbury can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer 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 dealing with Canterbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her leasehold apartment in Canterbury, Kelsey initiated the lease extension process as the 80 year deadline was quickly advancing. The transaction was finalised in October 2005. The landlord’s costs were restricted to about 450 GBP.
Ms Chloe López took over the lease of a basement flat in Canterbury in October 2012. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Canterbury with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected monthly. The lease ended in 2096. Having 70 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. W Alexander who, having owned a first floor apartment in Canterbury in March 1996. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar homes in Canterbury with an extended lease were valued about £246,800. The average amount of ground rent was £60 collected monthly. The lease ran out in 2076. Having 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 exclusive of legals.