Unfortunately that a Corsham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Corsham property prices.Once your lease nears 85ish years, 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 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Corsham will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
It is conventional wisdom that a property with more than 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 many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Corsham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 dealing with Corsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Elijah, started to get close to the 80-year threshold with the lease on his ground floor flat in Corsham. Having purchased his property two decades ago, the unexpired term was of little concern. by good luck, he recognised he needed to take steps soon on a lease extension. Elijah was able to extend his lease at the eleventh hour last August. Elijah and the freeholder via the managing agents in the end agreed on sum of £5,500 . If he had missed the deadline, the sum would have increased by a minimum £875.
Dr Ollie François purchased a one bedroom apartment in Corsham in July 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Corsham with a long lease were valued around £280,000. The average amount of ground rent was £45 invoiced annually. The lease ended in 2096. Considering the 70 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2012 we were phoned by Mr A Morgan who, having acquired a one bedroom flat in Corsham in January 1995. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Corsham with an extended lease were worth £223,400. The average ground rent payable was £60 collected quarterly. The lease elapsed in 2085. Considering the 59 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.