Unfortunately that a Cranbrook residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Cranbrook property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term falls below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Cranbrook will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Cranbrook with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Cranbrook leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her basement flat in Cranbrook, Bethany commenced the lease extension process just as the lease was nearing the all-important eighty-year threshold. The legal work was concluded in November 2008. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. W Lefebvre who, having completed a one bedroom apartment in Cranbrook in August 2012. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical homes in Cranbrook with an extended lease were valued around £206,200. The average ground rent payable was £60 collected monthly. The lease expiry date was in 2081. Considering the 56 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.
In 2009 we were phoned by Mr and Mrs. W Harris who, having completed a first floor apartment in Cranbrook in August 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparable homes in Cranbrook with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced annually. The lease lapsed in 2101. Considering the 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.