Craven Arms leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Craven Arms residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Craven Arms you should check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Craven Arms leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Craven Arms leasehold, as your property will be more valuable and marketable in respect 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.
Subsequent to unsuccessful negotiations with the freeholder of her leasehold flat in Craven Arms, Jordan initiated the lease extension process just as the lease was nearing the all-important 80-year deadline. The lease extension was finalised in April 2012. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. P Bell moved into a purpose-built apartment in Craven Arms in November 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Craven Arms with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed in 2083. Considering the 57 years left we approximated the premium to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.
Mr Henry Evans moved into a basement apartment in Craven Arms in September 2004. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable premises in Craven Arms with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease lapsed on 14 January 2103. Given that there were 77 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.