As the the remaining lease term of a Corsham residential lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Corsham will qualify for this right; however a conveyancer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Corsham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aaron was the the leasehold owner of a studio flat in Corsham being marketed with a lease of a little over sixty years unexpired. Aaron on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron obtained expert advice and secured an acceptable resolution informally and sell the property.
Last Christmas we were contacted by Dr Jayden Scott , who owned a ground floor apartment in Corsham in January 1998. The question was if we could estimate the price could be for a 90 year lease extension. Similar premises in Corsham with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease came to a finish in 2079. Having 54 years remaining we calculated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 exclusive of costs.
Dr W Turner took over the lease of a newly refurbished apartment in Corsham in January 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Corsham with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2099. Considering the 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.