Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Cranfield. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Cranfield have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give careful attention before delaying your Cranfield lease extension. Holding off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Cranfield with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cranfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cranfield valuers.
Last year Jackson, came critically near to the eighty-year threshold with the lease on his leasehold flat in Cranfield. Having bought his property 19 years ago, the length of the lease was of little significance. Luckily, he noticed he needed to take steps soon on Extending the lease. Jackson extended the lease at the eleventh hour in September. Jackson and the freeholder via the management company in the end agreed on the final figure of £5,500 . If the lease had gone lower than eighty years, the premium would have escalated by at least £1,100.
In 2014 we were e-mailed by Mr and Mrs. D Brown who, having bought a purpose-built apartment in Cranfield in November 2005. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparative residencies in Cranfield with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 billed quarterly. The lease ended in 2084. Having 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus costs.
Mr and Mrs. L Simon owned a newly refurbished apartment in Cranfield in April 2008. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Similar properties in Cranfield with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed monthly. The lease elapsed in 2095. Given that there were 71 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.