Canton leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Canton residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Canton you would be well advised to check if your lease has between 70 and 90 years left. There are good reasons why a Canton flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Canton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Canton can be a difficult process. We recommend you get guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Canton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the landlord of her first floor flat in Canton, Tia commenced the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension was concluded in January 2005. The freeholder’s costs were negotiated to below four hundred pounds.
Last year we were e-mailed by Mr and Mrs. U Robinson , who moved into a purpose-built apartment in Canton in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Canton with 100 year plus lease were valued around £216,000. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease concluded on 28 February 2083. Considering the 58 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
Mr and Mrs. C Martinez acquired a purpose-built flat in Canton in September 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Canton with an extended lease were valued around £200,000. The mid-range ground rent payable was £50 billed yearly. The lease expired in 2103. Considering the 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.