Corfe Mullen leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Corfe Mullen residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Corfe Mullen you should check if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Corfe Mullen leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Lucas, came very close to the eighty-year threshold with the lease on his ground floor flat in Corfe Mullen. In buying his flat two decades ago, the lease term was of no importance. Fortunately, he noticed he would imminently be paying an inflated amount for a lease extension. Lucas was able to extend his lease at the eleventh hour in September. Lucas and the freeholder via the management company subsequently agreed on a premium of £6,000 . If he not met the deadline, the amount would have become more exhorbitant by at least £925.
In 2010 we were called by Mr and Mrs. A Davis who, having moved into a first floor apartment in Corfe Mullen in May 1996. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical premises in Corfe Mullen with a long lease were valued around £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish in 2105. Having 80 years unexpired we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Mr Lucas Baker bought a one bedroom apartment in Corfe Mullen in September 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by a further 90 years. Identical premises in Corfe Mullen with 100 year plus lease were worth £275,000. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2094. Taking into account 69 years remaining we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.