When it comes to long leasehold premises in Codsall, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years left. Anyone in Codsall with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. Once the lease term has below 80 years outstanding, under the current legislation the landlord is entitled to calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Codsall leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jason owned a conversion apartment in Codsall on the market with a lease of a little over 59 years remaining. Jason on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jason to exercise his statutory right. Jason obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Mr Logan James moved into a garden flat in Codsall in August 2000. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparative properties in Codsall with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 24 March 2082. Taking into account 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.
In 2014 we were called by Mrs H Norbert who, having was assigned a lease of a basement flat in Codsall in March 2000. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Codsall with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 collected every twelve months. The lease end date was on 1 April 2093. Having 67 years unexpired we estimated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of legals.