The market value of Corbridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is below than 80 years
Leasehold premises in Corbridge with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Lease extensions in Corbridge can be a difficult process. We recommend you procure 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 a wealth of experience procuring Corbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo was the the leasehold owner of a conversion apartment in Corbridge on the market with a lease of fraction over fifty eight years unexpired. Hugo informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2010 we were contacted by Ms Courtney Garcia who, having purchased a purpose-built apartment in Corbridge in November 1998. The question was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Corbridge with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated in 2086. Given that there were 60 years left we approximated the premium to the freeholder for the lease extension to be between £25,700 and £29,600 not including expenses.
Last Autumn we were phoned by Mr and Mrs. M Mason , who purchased a recently refurbished flat in Corbridge in March 2002. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable homes in Corbridge with a long lease were in the region of £210,000. The average amount of ground rent was £50 invoiced quarterly. The lease ran out on 3 September 2106. Considering the 80 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.