The nearer a residential lease in Cranfield gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, beyond one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Many flat owners in Cranfield will meet the qualifying criteria; that being said a lawyer should be able to advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Cranfield lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Liam, came seriously near to the 80-year threshold with the lease on his leasehold flat in Cranfield. Having purchased his flat two decades ago, the lease term was of minimal bearing. Thankfully, he became aware that he needed to take action soon on a lease extension. Liam extended the lease at the eleventh hour in July. Liam and the freeholder via the management company subsequently settled on sum of £6,000 . If he not met the deadline, the amount would have increased by at least £1,100.
In 2013 we were approached by Ms Lucy Rivera who, having was assigned a lease of a newly refurbished flat in Cranfield in June 1997. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative residencies in Cranfield with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed annually. The lease concluded on 17 November 2101. Given that there were 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2014 we were e-mailed by Dr Isobel Thomas who, having moved into a first floor apartment in Cranfield in January 2002. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparable properties in Cranfield with 100 year plus lease were valued around £168,800. The average amount of ground rent was £60 billed yearly. The lease finished on 4 March 2081. Considering the 55 years remaining we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.