Cringleford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Cringleford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cringleford you really ought to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Cringleford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cringleford valuers.
Last Christmas Sam, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Cringleford. Having bought his home twenty years previously, the unexpired term was of little interest. by good luck, he recognised he needed to take action soon on Extending the lease. Sam arranged for a lease extension at the eleventh hour in January. Sam and the landlord ultimately agreed on a premium of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £850.
In 2012 we were approached by Dr R Bernard who, having purchased a newly refurbished apartment in Cringleford in February 2009. We are asked if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Cringleford with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 collected every twelve months. The lease terminated on 9 May 2105. Given that there were 80 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.
In 2010 we were approached by Dr U Ali who, having was assigned a lease of a one bedroom apartment in Cringleford in March 2001. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Cringleford with an extended lease were in the region of £275,000. The average ground rent payable was £45 invoiced annually. The lease termination date was in 2094. Taking into account 69 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.