Corfe Castle leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Corfe Castle enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Corfe Castle you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Corfe Castle with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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 be at least 75 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Corfe Castle can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Corfe Castle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Kyle, came seriously near to the eighty-year threshold with the lease on his basement apartment in Corfe Castle. Having bought his flat two decades ago, the unexpired term was of little concern. As luck would have it, he recognised he would soon be paying an inflated amount for a lease extension. Kyle arranged for a lease extension at the eleventh hour in April. Kyle and the freeholder ultimately agreed on a premium of £5,000 . If he had missed the deadline, the amount would have become more costly by a minimum £975.
In 2012 we were e-mailed by Mrs H Flores who, having purchased a ground floor flat in Corfe Castle in October 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Identical homes in Corfe Castle with an extended lease were in the region of £250,000. The average ground rent payable was £50 billed annually. The lease ended on 20 June 2096. Having 70 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Mr Zachary Clark acquired a garden apartment in Corfe Castle in January 2003. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Similar homes in Corfe Castle with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 invoiced annually. The lease elapsed in 2076. Having 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 plus fees.