When it comes to residential leasehold property in Cranfield, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Residents in Cranfield with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once a lease has under 80 years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Cranfield with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| Santander |
The lawyers that we work with procure 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.
Harvey owned a studio flat in Cranfield on the market with a lease of a little over 61 years left. Harvey informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to exercise his statutory right. Harvey obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were called by Mr and Mrs. H Lefebvre , who purchased a one bedroom apartment in Cranfield in April 1996. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Cranfield with a long lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease expired in 2088. Given that there were 62 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
In 2012 we were phoned by Ms Y Moore who, having completed a one bedroom flat in Cranfield in October 1998. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Cranfield with an extended lease were worth £265,000. The mid-range ground rent payable was £50 collected per annum. The lease finished in 2099. Given that there were 73 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.