Unfortunately that a North Cornelly residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the North Cornelly property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Most leasehold owners in North Cornelly will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Lease extensions in North Cornelly can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 dealing with North Cornelly lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
George owned a high value apartment in North Cornelly being marketed with a lease of a little over sixty years remaining. George informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last Christmas we were contacted by Mr and Mrs. M Rodríguez , who moved into a newly refurbished flat in North Cornelly in February 2009. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Identical homes in North Cornelly with an extended lease were valued around £280,000. The average amount of ground rent was £55 invoiced per annum. The lease elapsed on 18 October 2102. Having 77 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last April we were e-mailed by Mr and Mrs. V Clark , who bought a studio flat in North Cornelly in October 2002. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar flats in North Cornelly with a long lease were worth £183,600. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded in 2082. Taking into account 57 years left we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.