It’s an underpublicised certainty that a Cranfield residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Cranfield property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Cranfield will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Cranfield,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cranfield valuers.
In 2014 Tommy, started to get close to the eighty-year mark with the lease on his first floor flat in Cranfield. Having bought his home 18 years ago, the length of the lease was of little importance. by good luck, he noticed he needed to take steps soon on Extending the lease. Tommy extended the lease at the eleventh hour in June. Tommy and the freeholder via the management company subsequently settled on sum of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £975.
Dr Seth Bernard owned a one bedroom apartment in Cranfield in February 1998. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical residencies in Cranfield with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease lapsed on 11 November 2086. Considering the 60 years unexpired we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Last Autumn we were approach by Mr R Díaz , who completed a recently refurbished flat in Cranfield in September 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Cranfield with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded in 2097. Considering the 71 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.