Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cubitt Town. Clearly, the length of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Cubitt Town have the legal entitlement to extend the lease for a further 90 years under statute. Please give due consideration before putting off your Cubitt Town lease extension. Putting off that expense now likely increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Cubitt Town with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 landlord in Cubitt Town,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cubitt Town valuers.
Seth owned a studio apartment in Cubitt Town on the market with a lease of just over sixty years left. Seth on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Seth to exercise his statutory right. Seth procured expert legal guidance and secured an acceptable resolution without going to tribunal and readily saleable.
Mrs Laura Stewart purchased a first floor flat in Cubitt Town in September 2011. We are asked if we could shed any light on how much (approximately) price would likely be to extend the lease by ninety years. Comparative premises in Cubitt Town with 100 year plus lease were in the region of £265,200. The average ground rent payable was £65 billed yearly. The lease ran out in 2091. Considering the 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 exclusive of costs.
An example of a Freehold Enfranchisement case for a Cubitt Town residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case affected 3 flats. The unexpired residue of the current lease was 101.61 years.