It’s an underpublicised truth that a Corfe Mullen residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Corfe Mullen property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Corfe Mullen will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Santander | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers 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 lawyer we work with provide it.
Eliot owned a conversion flat in Corfe Mullen on the market with a lease of a little over 59 years outstanding. Eliot on an informal basis spoke with his freeholder being a well known Manchester-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 an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2013 we were phoned by Mrs Rebecca Moore who, having took over the lease of a one bedroom apartment in Corfe Mullen in March 2000. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Corfe Mullen with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £45 billed annually. The lease elapsed on 24 April 2097. Considering the 71 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Christmas we were phoned by Ms Abbie Murphy , who was assigned a lease of a first floor flat in Corfe Mullen in January 1998. The dilemma was if we could approximate the premium could be for a 90 year lease extension. Identical homes in Corfe Mullen with 100 year plus lease were valued around £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease expired in 2086. Taking into account 60 years left we approximated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of professional charges.