Caddington residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a period of years.
Leasehold properties in Caddington with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Caddington,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caddington valuers.
William owned a conversion flat in Caddington on the market with a lease of fraction over fifty eight years unexpired. William on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Autumn we were called by Mrs D Morgan , who purchased a first floor apartment in Caddington in February 2001. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical properties in Caddington with 100 year plus lease were valued about £210,600. The mid-range ground rent payable was £45 collected yearly. The lease ended on 19 September 2087. Taking into account 62 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus legals.
Dr E Lefebvre acquired a basement apartment in Caddington in June 2009. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Comparable flats in Caddington with a long lease were worth £265,000. The average amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2098. Having 73 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.