Corfe Castle leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Corfe Castle residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Corfe Castle you must investigate if your lease has between 70 and ninety years left. There are good reasons why a Corfe Castle flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 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 |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
Lease extensions in Corfe Castle can be a difficult process. We recommend you get professional help from a conveyancer 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 in-depth market knowledge dealing with 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.
Off the back of unsuccessful correspondence with the freeholder of her one bedroom apartment in Corfe Castle, Lauren started the lease extension process just as her lease was nearing the crucial eighty-year deadline. The transaction completed in June 2015. The landlord’s costs were negotiated to slightly above 650 GBP.
In 2010 we were called by Mr and Mrs. W Phillips who, having purchased a purpose-built flat in Corfe Castle in June 2004. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Corfe Castle with a long lease were in the region of £218,000. The average ground rent payable was £45 collected every twelve months. The lease termination date was in 2088. Having 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including legals.
Mrs Sarah Gómez moved into a basement flat in Corfe Castle in July 1999. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Corfe Castle with 100 year plus lease were valued around £265,000. The average amount of ground rent was £50 billed per annum. The lease expiry date was in 2099. Considering the 74 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.