Codsall leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Codsall will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and procedures to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Codsall,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Codsall valuers.
Off the back of protracted correspondence with the freeholder of her garden apartment in Codsall, Jordan initiated the lease extension process just as her lease was nearing the all-important 80-year threshold. The lease extension completed in November 2010. The freeholder’s fees were kept to an absolute minimum.
Dr W Morel completed a purpose-built apartment in Codsall in July 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Comparative premises in Codsall with a long lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed quarterly. The lease finished in 2087. Given that there were 61 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
In 2010 we were phoned by Mr S Simon who, having took over the lease of a ground floor apartment in Codsall in September 2012. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Codsall with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 collected quarterly. The lease terminated in 2098. Having 72 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.