Craven Arms leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease dips lower than 80 years - otherwise a higher premium will be payable. Flat owners in Craven Arms will usually qualify for a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Craven Arms with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Craven Arms leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful correspondence with the freeholder of her two bedroom apartment in Craven Arms, Eleanor commenced the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in October 2005. The landlord’s costs were restricted to slightly above 700 pounds.
In 2014 we were e-mailed by Ms Laura Gómez who, having owned a first floor apartment in Craven Arms in April 2007. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar homes in Craven Arms with a long lease were worth £171,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease lapsed on 9 June 2076. Considering the 50 years left we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 not including costs.
In 2012 we were approached by Mr and Mrs. N Bernard who, having bought a first floor flat in Craven Arms in January 2000. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable homes in Craven Arms with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 billed quarterly. The lease end date was on 28 June 2096. Given that there were 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.