When it comes to long leasehold property in Corfe Castle, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are less than 80 years remaining. Residents in Corfe Castle with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has fewer than eighty years left, under the relevant Act the freeholder can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you better control over the value of your Corfe Castle leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
David owned a 2 bedroom apartment in Corfe Castle on the market with a lease of a few days over fifty eight years outstanding. David on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last month we were phoned by Mr J González , who bought a garden apartment in Corfe Castle in September 2010. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative properties in Corfe Castle with a long lease were worth £200,800. The average ground rent payable was £65 collected quarterly. The lease expired on 11 July 2085. Given that there were 60 years remaining we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.
Mr and Mrs. R Rogers owned a one bedroom apartment in Corfe Castle in May 2000. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Corfe Castle with a long lease were worth £255,000. The average ground rent payable was £50 billed quarterly. The lease finished on 22 February 2096. Taking into account 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.