With a long leasehold premises in Cranleigh, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Anyone in Cranleigh with a lease approaching 81 years unexpired should seriously think of extending it sooner rather than later. When a lease has fewer than 80 years outstanding, under the current Act the landlord can calculate and levy a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Engaging our service gives you increased control over the value of your Cranleigh leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the freeholder of her two bedroom flat in Cranleigh, Gemma initiated the lease extension process as the eighty year mark was swiftly advancing. The lease extension completed in October 2008. The freeholder’s fees were negotiated to approximately 650 pounds.
Mr and Mrs. C Nguyen bought a newly refurbished apartment in Cranleigh in August 2004. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Cranleigh with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 invoiced annually. The lease elapsed on 11 July 2093. Considering the 68 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Last Winter we were contacted by Mr and Mrs. J King , who acquired a studio flat in Cranleigh in August 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Cranleigh with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ran out in 2104. Taking into account 79 years left we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of legals.