The nearer a residential lease in Corbridge gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Corbridge will meet the qualifying criteria; that being said a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Corbridge with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
The conveyancing solicitors that we work with undertake Corbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jacob was the the leasehold owner of a high value flat in Corbridge being sold with a lease of a little over 61 years outstanding. Jacob informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2013 we were approached by Mr and Mrs. F Thomas who, having completed a basement apartment in Corbridge in June 2008. We are asked if we could estimate the premium could be for a 90 year lease extension. Identical flats in Corbridge with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease ran out on 20 March 2105. Taking into account 79 years remaining we estimated the premium to the landlord to extend the lease to be between £7,600 and £8,800 not including expenses.
Last Summer we were called by Mr I Lefebvre , who acquired a ground floor apartment in Corbridge in April 2004. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative homes in Corbridge with a long lease were valued about £270,000. The average ground rent payable was £65 billed per annum. The lease ran out in 2094. Having 68 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.