The closer a domestic lease in Caversham nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Caversham will qualify for this right; nevertheless a conveyancer can advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Caversham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Two years ago Reuben, came precariously close to the 80-year threshold with the lease on his studio flat in Caversham. In buying his home two decades ago, the unexpired term was of little relevance. by good luck, he recognised he needed to take action soon on Extending the lease. Reuben was able to extend his lease just in the nick of time in May. Reuben and the landlord ultimately settled on sum of £5,500 . If the lease had dipped below 80 years, the figure would have escalated by a minimum £1,000.
In 2010 we were phoned by Mr and Mrs. D Scott who, having was assigned a lease of a garden flat in Caversham in February 1996. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Caversham with an extended lease were valued around £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease end date was in 2095. Taking into account 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
Dr Archie Green took over the lease of a purpose-built apartment in Caversham in May 2007. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Caversham with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease concluded in 2106. Considering the 80 years remaining we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.