It’s a harsh certainty that a Corsham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Corsham property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Corsham will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the process.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Corsham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 procuring Corsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful correspondence with the landlord of her two bedroom apartment in Corsham, Katherine initiated the lease extension process as the eighty year mark was fast advancing. The lease extension completed in August 2014. The landlord’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. O Clarke who, having was assigned a lease of a studio apartment in Corsham in April 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Corsham with a long lease were valued around £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2086. Taking into account 61 years left we estimated the compensation to the freeholder to extend the lease to be within £22,800 and £26,400 plus professional charges.
Last Spring we were e-mailed by Dr G Laurent , who bought a garden flat in Corsham in June 1995. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Corsham with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 collected annually. The lease lapsed on 22 November 2075. Taking into account 50 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus costs.