The re-sale value of a leasehold property in Corfe Castle is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that formalities can be concluded in advance of the eighty year threshold. Statute enables Corfe Castle qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Corfe Castle with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Corfe Castle,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 Corfe Castle valuers.
Trailing unsuccessful negotiations with the freeholder of her ground floor flat in Corfe Castle, Leah initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The legal work completed in February 2006. The landlord’s fees were kept to an absolute minimum.
Mrs Alexandra Gray moved into a basement flat in Corfe Castle in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Corfe Castle with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected per annum. The lease concluded in 2103. Considering the 77 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
Dr S Wood moved into a purpose-built apartment in Corfe Castle in July 2007. The question was if we could estimate the price would be to prolong the lease by a further 90 years. Similar premises in Corfe Castle with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2083. Taking into account 57 years outstanding we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.