The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Corby can extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Corby lease extension. Putting off the costs today simply escalates the amount you will eventually have to pay to extend the lease.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Corby,the lease extension lawyers that we work with will always be happy 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.
Lucas was the the leasehold owner of a conversion flat in Corby being sold with a lease of just over fifty eight years left. Lucas on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Lucas to exercise his statutory right. Lucas procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last January we were contacted by Dr W Pérez , who acquired a one bedroom flat in Corby in January 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Corby with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished on 6 February 2090. Having 64 years as a residual term we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.
Dr Tommy Wilson was assigned a lease of a purpose-built apartment in Corby in February 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar residencies in Corby with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 invoiced per annum. The lease expiry date was in 2079. Given that there were 53 years remaining we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.