The only way is down when it comes to Cranleigh lease terms. Cranleigh leaseholds that have a lease term lower than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will increase.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The lawyers that we work with handle Cranleigh 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 conveyancing solicitor we work with provide it.
Following lengthy discussions with the freeholder of her basement apartment in Cranleigh, Robyn commenced the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction was concluded in November 2015. The landlord’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mrs Emma Torres who, having owned a purpose-built flat in Cranleigh in February 1999. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable homes in Cranleigh with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 collected per annum. The lease elapsed on 11 May 2089. Having 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £17,100 and £19,800 plus legals.
In 2013 we were contacted by Mr and Mrs. G King who, having acquired a ground floor apartment in Cranleigh in May 1996. We are asked if we could approximate the price would be to prolong the lease by 90 years. Similar residencies in Cranleigh with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed per annum. The lease terminated on 24 January 2100. Considering the 74 years remaining we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.