Corston leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Corston will mostly qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you better control over the value of your Corston leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her one bedroom flat in Corston, Isabelle initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was finalised in March 2014. The freeholder’s costs were restricted to about 550 GBP.
Last Winter we were called by Dr Lydia Anderson , who moved into a newly refurbished flat in Corston in November 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar properties in Corston with a long lease were worth £200,000. The average ground rent payable was £50 collected every twelve months. The lease finished in 2104. Taking into account 78 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. D Cook acquired a garden apartment in Corston in June 2010. The question was if we could estimate the price would be to extend the lease by an additional years. Identical flats in Corston with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 billed monthly. The lease lapsed in 2093. Having 67 years outstanding we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of professional charges.