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Why you should start your Cudham lease extension


Why you should start your Cudham lease extension today:

A Cudham leasehold property depreciates with the years remaining on the lease.

Cudham leases on domestic deteriorating in value. Where your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Cudham will mostly qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.

An extended lease is almost the same value as a freehold

It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.

Mortgage lenders may not finance a property with a short lease

Many banks and building societies will not lend on a lease with under seventy years remaining - although this varies between mortgage companies. A purchaser will likely encounter difficulties in obtaining a mortgage and this will result in your Cudham property being difficult to dispose of or to obtain finance on.

Lender Requirement
Bank of Scotland Minimum 70 years from the date of the mortgage.
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.
Halifax Minimum 70 years from the date of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.

Get in touch with one of our Cudham lease extension solicitors or enfranchisement solicitors

Lease extensions in Cudham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.

We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cudham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.

Cudham Lease Extension Case Summaries:

Natalie, Cudham, South East London,

Subsequent to lengthy discussions with the landlord of her garden flat in Cudham, Natalie initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension was concluded in June 2009. The freeholder’s charges were negotiated to less than 650 GBP.

Cudham case:

Ms Rhiannon Morgan acquired a one bedroom flat in Cudham in February 2006. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar premises in Cudham with a long lease were in the region of £215,600. The average amount of ground rent was £45 collected quarterly. The lease termination date was on 10 January 2087. Given that there were 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus expenses.

Decision in Bromley

An example of a Lease Extension matter before the tribunal for a Cudham residence is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The remaining number of years on the lease was 50.57 years.