With a long leasehold premises in Corby, you are actually buying an entitlement to reside in a property for a set period 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 think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than 80 years remaining. Residents in Corby with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than 80 years left, under the current statute the freeholder can calculate and levy a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom 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 ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Corby can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 dealing with Corby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the landlord of her purpose-built flat in Corby, Chloe started the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in August 2015. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. L Miller who, having acquired a basement apartment in Corby in January 1999. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparable premises in Corby with 100 year plus lease were worth £240,600. The mid-range ground rent payable was £60 collected quarterly. The lease concluded in 2088. Given that there were 62 years left we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
Last year we were e-mailed by Dr Milo David , who owned a garden flat in Corby in September 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Corby with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 collected yearly. The lease terminated in 2077. Considering the 51 years remaining we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.