The re-sale value of a leasehold property in Corby is impacted by how long the lease has left to run. If it is near to or less than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year mark. Leasehold Reform legislation enables Corby qualifying lessees to an additional term of 90 years on top of the remaining term, at a peppercorn rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Retaining our service will provide you better control over the value of your Corby leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jacob owned a conversion flat in Corby on the market with a lease of a little over 59 years left. Jacob informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jacob to invoke his statutory right. Jacob obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Dr Connor Leroy purchased a basement flat in Corby in November 1998. The dilemma was if we could approximate the price would be for a 90 year lease extension. Comparative properties in Corby with 100 year plus lease were valued around £171,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease expiry date was on 28 July 2076. Given that there were 50 years left we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including expenses.
In 2009 we were e-mailed by Mr O Taylor who, having bought a first floor apartment in Corby in August 2005. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Similar properties in Corby with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed quarterly. The lease ran out on 9 July 2096. Given that there were 70 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.