Cranbrook leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Cranbrook will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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 will provide you better control over the value of your Cranbrook leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Jacob, started to get close to the eighty-year mark with the lease on his studio apartment in Cranbrook. In buying his home 18 years ago, the lease term was of no interest. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Jacob extended the lease just in the nick of time in September. Jacob and the freeholder subsequently agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,025.
Last Christmas we were phoned by Mr and Mrs. D Nelson , who took over the lease of a garden flat in Cranbrook in May 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar flats in Cranbrook with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2081. Taking into account 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of professional charges.
Mrs Erin Leroy completed a one bedroom flat in Cranbrook in January 1997. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar homes in Cranbrook with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish on 18 July 2101. Having 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.