Canton leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops below 80 years - otherwise a higher amount will be payable. Flat owners in Canton will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Canton with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you enhanced control over the value of your Canton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful discussions with the freeholder of her garden apartment in Canton, Rosie commenced the lease extension process as the eighty year mark was swiftly nearing. The legal work was concluded in February 2012. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. L Brooks bought a purpose-built apartment in Canton in January 2007. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar properties in Canton with a long lease were worth £257,800. The average amount of ground rent was £65 collected every twelve months. The lease elapsed in 2091. Taking into account 65 years outstanding we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.
Last August we were e-mailed by Dr Francesca Gómez , who acquired a first floor apartment in Canton in May 2001. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable premises in Canton with a long lease were worth £191,400. The average amount of ground rent was £55 billed monthly. The lease came to a finish on 16 January 2080. Considering the 54 years unexpired we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus legals.