With a residential leasehold premises in Canton, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Canton with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has fewer than 80 years remaining, under the current Act the landlord can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Canton can be a difficult process. We recommend you get guidance from a lawyer 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.
In 2014 Jayden, started to get close to the 80-year mark with the lease on his leasehold flat in Canton. Having bought his home 19 years previously, the lease term was of minimal relevance. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Jayden arranged for a lease extension just under the wire in April. Jayden and the freeholder via the managing agents in the end settled on sum of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £875.
Last Winter we were approach by Ms W Brown , who moved into a ground floor apartment in Canton in February 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparable properties in Canton with an extended lease were in the region of £225,800. The average ground rent payable was £60 billed annually. The lease finished in 2086. Given that there were 60 years unexpired we estimated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of expenses.
In 2012 we were approached by Mr and Mrs. I Gómez who, having bought a studio apartment in Canton in June 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical premises in Canton with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2106. Having 80 years outstanding we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.