With a residential leasehold property in Caversham, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Caversham with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the current Act the landlord can calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Caversham with more than 100 years left on the lease are sometimes 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 merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Caversham,the lease extension lawyers 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 Caversham valuers.
Andrew was the the leasehold owner of a high value flat in Caversham on the market with a lease of fraction over 61 years unexpired. Andrew on an informal basis spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Andrew to invoke his statutory right. Andrew procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were approach by Mr and Mrs. G Laurent , who took over the lease of a studio flat in Caversham in September 2007. The question was if we could estimate the premium could be for a ninety year lease extension. Identical properties in Caversham with a long lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed on 26 June 2092. Taking into account 67 years unexpired we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.
Mrs Erin Moore acquired a first floor apartment in Caversham in October 1997. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative residencies in Caversham with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2103. Given that there were 78 years left we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.