With a domestic leasehold property in Corby, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Residents in Corby with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has below 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Corby leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jonathan owned a 2 bedroom flat in Corby on the market with a lease of fraction over 59 years remaining. Jonathan informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Ms C Girard moved into a basement flat in Corby in September 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Corby with 100 year plus lease were valued around £267,600. The average ground rent payable was £65 invoiced annually. The lease ran out on 18 June 2092. Having 67 years remaining we estimated the compensation to the freeholder for the lease extension to be within £14,300 and £16,400 plus expenses.
Last May we were contacted by Dr N Brown , who completed a one bedroom apartment in Corby in May 2012. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar homes in Corby with 100 year plus lease were valued about £206,200. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish on 3 September 2081. Given that there were 56 years remaining we approximated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.