There is no doubt about it a leasehold flat or house in Cringleford is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Cringleford will qualify for this right; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same 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 decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 will provide you increased control over the value of your Cringleford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Felix was the the leasehold proprietor of a conversion apartment in Cringleford being sold with a lease of a few days over sixty years unexpired. Felix informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Felix to invoke his statutory right. Felix obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Last Christmas we were approach by Dr Muhammad Scott , who purchased a one bedroom apartment in Cringleford in January 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparable flats in Cringleford with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease finished on 14 January 2077. Given that there were 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
In 2010 we were approached by Mr V François who, having took over the lease of a one bedroom flat in Cringleford in November 1996. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Similar properties in Cringleford with an extended lease were valued about £285,000. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 19 July 2097. Having 71 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.