It’s a harsh certainty that a Cranleigh residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Cranleigh property market.Where your lease has approximately 90 years left, you need to start considering 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 below eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Cranleigh will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Cranleigh with over one hundred years remaining 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Retaining our service will provide you better control over the value of your Cranleigh leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the freeholder of her leasehold flat in Cranleigh, Alisha started the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was finalised in August 2011. The landlord’s fees were kept to an absolute minimum.
Ms Y Roberts was assigned a lease of a studio flat in Cranleigh in July 2005. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparative flats in Cranleigh with an extended lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease ran out on 12 June 2103. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
Mrs Rosie Watson purchased a ground floor apartment in Cranleigh in November 2005. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative properties in Cranleigh with a long lease were worth £183,600. The average ground rent payable was £65 collected per annum. The lease ended in 2083. Having 57 years remaining we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus legals.