Corfe Castle leases on residential properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Corfe Castle will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in Corfe Castle with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with procure Corfe Castle lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted negotiations with the landlord of her studio apartment in Corfe Castle, Tia commenced the lease extension process just as the lease was nearing the all-important eighty-year mark. The legal work was concluded in May 2011. The freeholder’s charges were kept to an absolute minimum.
Last Autumn we were phoned by Mr and Mrs. J Martínez , who took over the lease of a garden flat in Corfe Castle in July 2008. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Corfe Castle with a long lease were in the region of £260,000. The average ground rent payable was £50 billed annually. The lease lapsed on 16 January 2098. Considering the 72 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Autumn we were e-mailed by Ms J White , who bought a first floor flat in Corfe Castle in April 1995. The question was if we could approximate the price would be to prolong the lease by a further 90 years. Similar residencies in Corfe Castle with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 billed yearly. The lease termination date was in 2078. Considering the 52 years remaining we estimated the compensation to the freeholder to extend the lease to be between £41,800 and £48,400 plus legals.