The market value of a leasehold property in Craven Arms depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that formalities can be addressed well before the eighty year cut off point. Leasehold Reform legislation entitles Craven Arms qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Craven Arms with in excess of one hundred years unexpired 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 upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Craven Arms can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Craven Arms lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Austin, started to get near to the eighty-year mark with the lease on his basement apartment in Craven Arms. In buying his flat two decades ago, the length of the lease was of little bearing. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Austin arranged for a lease extension at the eleventh hour last July. Austin and the freeholder subsequently agreed on a premium of £5,500 . If the lease had descended to less than eighty years, the figure would have become more exhorbitant by a minimum £1,075.
Last Autumn we were approach by Mr and Mrs. N Campbell , who purchased a one bedroom flat in Craven Arms in April 1997. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Similar premises in Craven Arms with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced every twelve months. The lease ran out on 5 November 2101. Having 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.
In 2014 we were phoned by Mr and Mrs. W Lambert who, having was assigned a lease of a basement apartment in Craven Arms in June 2006. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Identical premises in Craven Arms with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced quarterly. The lease elapsed in 2090. Having 65 years remaining we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.