Corston leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Corston residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Corston you must see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Corston flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold properties in Corston with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Corston can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
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 Corston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her leasehold flat in Corston, Freya started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction completed in March 2005. The freeholder’s charges were restricted to below 700 GBP.
Mr and Mrs. P Young purchased a one bedroom apartment in Corston in November 2006. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative properties in Corston with a long lease were worth £275,000. The average ground rent payable was £65 billed monthly. The lease concluded on 14 November 2094. Given that there were 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Last Winter we were contacted by Mr and Mrs. L Scott , who moved into a studio flat in Corston in March 2005. The question was if we could approximate the premium could be to prolong the lease by an additional years. Comparative properties in Corston with a long lease were in the region of £208,600. The average ground rent payable was £60 collected monthly. The lease ran out on 11 January 2083. Considering the 57 years outstanding we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.