The re-sale value of a leasehold property in Corfe Mullen depends on how long the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension prior to buying. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year threshold. Current legislation entitles Corfe Mullen qualifying lessees to acquire a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Corfe Mullen lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Joseph was the the leasehold owner of a conversion apartment in Corfe Mullen on the market with a lease of a few days over 61 years unexpired. Joseph informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Joseph to invoke his statutory right. Joseph procured expert advice and secured an acceptable resolution informally and sell the property.
In 2014 we were called by Mrs Gemma Vincent who, having was assigned a lease of a one bedroom apartment in Corfe Mullen in May 2003. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Corfe Mullen with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed every twelve months. The lease end date was in 2090. Taking into account 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 not including expenses.
In 2013 we were phoned by Mr C Carter who, having was assigned a lease of a one bedroom apartment in Corfe Mullen in January 2012. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Corfe Mullen with an extended lease were valued around £184,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 2 August 2079. Having 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of costs.