There is no doubt about it a leasehold flat or house in Cranbrook is a wasting asset as a result of the shortening lease. If the residual term has, over 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Cranbrook will qualify for this right; however a conveyancing solicitor can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Cranbrook with over 100 years left 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 Cranbrook can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Cranbrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Henry owned a 2 bedroom apartment in Cranbrook being sold with a lease of a few days over 72 years left. Henry on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
In 2009 we were called by Mr Ethan François who, having owned a ground floor flat in Cranbrook in February 2007. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical premises in Cranbrook with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease expiry date was on 19 October 2098. Taking into account 72 years as a residual term we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.
In 2011 we were e-mailed by Mr and Mrs. Y Ricardo who, having purchased a garden apartment in Cranbrook in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Similar premises in Cranbrook with a long lease were valued about £233,200. The average ground rent payable was £60 collected yearly. The lease terminated on 13 September 2087. Having 61 years remaining we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including legals.