Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Corsham. Clearly, the term of lease left shortens over time. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Corsham have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful deliberation before putting off your Corsham lease extension. Putting off the cost now simply increases the price you will ultimately incur to extend your lease
Leasehold properties in Corsham with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with procure Corsham 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.
Reuben was the the leasehold proprietor of a high value flat in Corsham being marketed with a lease of fraction over fifty eight years remaining. Reuben on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2013 we were contacted by Mr M Vincent who, having purchased a one bedroom flat in Corsham in July 2008. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable premises in Corsham with a long lease were worth £174,200. The average ground rent payable was £55 collected annually. The lease expiry date was in 2077. Having 51 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of fees.
Last year we were phoned by Dr W Rivera , who completed a first floor flat in Corsham in August 2011. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar premises in Corsham with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 billed annually. The lease ended in 2097. Having 71 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus professional charges.