Craven Arms leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Craven Arms will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Craven Arms with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
Lease extensions in Craven Arms can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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.
Two years ago Teddy, came critically near to the eighty-year threshold with the lease on his studio flat in Craven Arms. Having purchased his home two decades ago, the lease term was of little significance. Thankfully, he became aware that he would soon be paying way over the odds for Extending the lease. Teddy was able to extend his lease at the eleventh hour last January. Teddy and the landlord in the end settled on the final figure of £5,500 . If he had missed the deadline, the figure would have become more costly by at least £1,150.
Last Christmas we were phoned by Mr Jacob Jones , who purchased a ground floor flat in Craven Arms in February 2008. The question was if we could estimate the price would be to extend the lease by a further 90 years. Similar premises in Craven Arms with an extended lease were valued around £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease came to a finish on 11 April 2093. Considering the 67 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus expenses.
Last Winter we were approach by Mr Cameron Edwards , who owned a one bedroom flat in Craven Arms in May 2010. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Identical residencies in Craven Arms with 100 year plus lease were worth £206,200. The average amount of ground rent was £60 collected per annum. The lease lapsed in 2082. Taking into account 56 years remaining we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including costs.