With a residential leasehold premises in Corfe Mullen, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Corfe Mullen with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years remaining, under the current legislation the freeholder can calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Corfe Mullen can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Mullen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Dexter, started to get near to the 80-year threshold with the lease on his first floor apartment in Corfe Mullen. Having purchased his flat two decades ago, the lease term was of little interest. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Dexter was able to extend his lease at the eleventh hour in July. Dexter and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £900.
Mrs Rachel Vincent took over the lease of a ground floor flat in Corfe Mullen in August 2001. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Identical residencies in Corfe Mullen with an extended lease were valued about £260,200. The average ground rent payable was £65 collected every twelve months. The lease terminated on 7 July 2092. Taking into account 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus expenses.
Mr and Mrs. T Young purchased a recently refurbished apartment in Corfe Mullen in May 2004. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable homes in Corfe Mullen with a long lease were in the region of £198,800. The average ground rent payable was £55 billed yearly. The lease elapsed in 2081. Taking into account 55 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including legals.