Caversham leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher premium will be due. Leasehold owners in Caversham will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Caversham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caversham valuers.
During the course of the last few months Blake, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Caversham. Having bought his flat two decades ago, the length of the lease was of minimal significance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Blake arranged for a lease extension just under the wire in January. Blake and the freeholder via the management company in the end agreed on a premium of £5,500 . If he not met the deadline, the figure would have gone up by a minimum £1,050.
Mr and Mrs. B Scott purchased a one bedroom apartment in Caversham in April 2001. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparative properties in Caversham with 100 year plus lease were in the region of £193,400. The mid-range ground rent payable was £65 billed quarterly. The lease terminated in 2084. Considering the 59 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of legals.
In 2009 we were called by Dr Muhammad Gray who, having purchased a purpose-built flat in Caversham in March 2004. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar premises in Caversham with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease terminated on 22 November 2095. Having 70 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.