As the length of the unexpired term of a Cranleigh domestic lease diminished so does its value and therefore the value of your property. If the lease has, more than one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Cranleigh will qualify for this right; nevertheless a conveyancing solicitor will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Cranleigh leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Aiden owned a 2 bedroom flat in Cranleigh on the market with a lease of fraction over 72 years unexpired. Aiden on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Last Summer we were phoned by Mr and Mrs. M Moreau , who took over the lease of a basement apartment in Cranleigh in June 2004. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparative residencies in Cranleigh with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated on 9 January 2105. Having 80 years outstanding we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Last Summer we were phoned by Mr and Mrs. L Rose , who bought a ground floor apartment in Cranleigh in February 2006. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative premises in Cranleigh with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ended on 17 February 2085. Considering the 60 years remaining we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus professional charges.