For those whose Corfe Castle flat is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Birmingham Midshires | |
| Nationwide Building Society | |
| Skipton Building Society |
Irrespective of whether you are a tenant or a freeholder in Corfe Castle,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Corfe Castle valuers.
Riley owned a high value flat in Corfe Castle on the market with a lease of just over sixty years remaining. Riley informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Riley to exercise his statutory right. Riley procured expert legal guidance and secured satisfactory deal informally and sell the property.
Last Winter we were e-mailed by Mr and Mrs. V Wright , who purchased a one bedroom flat in Corfe Castle in January 2012. The question was if we could approximate the price would be to extend the lease by ninety years. Similar residencies in Corfe Castle with a long lease were worth £227,800. The mid-range ground rent payable was £45 billed quarterly. The lease expired on 28 November 2091. Having 65 years left we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
In 2013 we were e-mailed by Mrs Natalie Robinson who, having purchased a first floor flat in Corfe Castle in August 2009. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparable residencies in Corfe Castle with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 billed every twelve months. The lease ended on 15 May 2102. Having 76 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.