Corfe Mullen residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property 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 property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Corfe Mullen can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Mullen lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Adam, started to get close to the eighty-year mark with the lease on his garden flat in Corfe Mullen. In buying his property twenty years ago, the length of the lease was of minimal relevance. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. Adam was able to extend his lease at the eleventh hour last September. Adam and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had dipped lower than 80 years, the price would have escalated by a minimum £1,025.
In 2011 we were called by Ms Chloe Johnson who, having purchased a studio flat in Corfe Mullen in January 2009. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative flats in Corfe Mullen with 100 year plus lease were worth £233,200. The average amount of ground rent was £60 billed annually. The lease end date was in 2086. Having 61 years unexpired we estimated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including costs.
Last month we were approach by Mr and Mrs. U Pérez , who was assigned a lease of a purpose-built apartment in Corfe Mullen in April 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable premises in Corfe Mullen with a long lease were in the region of £166,800. The average ground rent payable was £50 invoiced monthly. The lease termination date was on 15 April 2075. Given that there were 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of professional charges.