Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Corby. Inevitably, the term of lease left reduces over time. This is often overlooked and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible leaseholders in Corby have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Corby lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| The Mortgage Works |
Regardless of whether you are a tenant or a landlord in Corby,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Corby valuers.
Finley owned a 2 bedroom flat in Corby on the market with a lease of a few days over sixty years outstanding. Finley informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
In 2009 we were called by Dr U Norbert who, having acquired a studio flat in Corby in October 2003. The question was if we could estimate the price would be to prolong the lease by an additional years. Identical residencies in Corby with an extended lease were worth £275,000. The average ground rent payable was £45 invoiced annually. The lease terminated on 24 May 2095. Given that there were 69 years left we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Last month we were phoned by Dr F García , who owned a newly refurbished apartment in Corby in February 2007. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Corby with a long lease were worth £216,000. The mid-range ground rent payable was £60 collected per annum. The lease concluded in 2084. Having 58 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus fees.