The market value of a leasehold property in Corby depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Statute enables Corby qualifying lessees to an additional term of 90 years in addition to the remaining term, at a peppercorn rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Corby with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Regardless of whether you are a tenant or a landlord in Corby,the lease extension solicitors 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.
Two years ago Michael, came critically close to the eighty-year threshold with the lease on his basement flat in Corby. In buying his flat two decades ago, the length of the lease was of no concern. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Michael extended the lease just in the nick of time last July. Michael and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £850.
Last Christmas we were contacted by Mr and Mrs. O Smith , who completed a studio flat in Corby in January 2011. 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 Corby with an extended lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease ran out on 3 April 2104. Given that there were 79 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Ms E Edwards owned a studio apartment in Corby in June 2010. The question was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative flats in Corby with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 invoiced yearly. The lease expired on 4 February 2093. Considering the 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.