The re-sale value of a leasehold property in Cudham is impacted by how many years the lease has left to run. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed prior to the eighty year threshold. Statute enables Cudham qualifying lessees to an additional term of 90 years in addition to the existing term, at a nominal rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Cudham with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a landlord in Cudham,the lease extension lawyers 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 Cudham valuers.
Austin was the the leasehold proprietor of a high value apartment in Cudham on the market with a lease of a little over sixty years unexpired. Austin on an informal basis spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last year we were e-mailed by Mr and Mrs. I Parker , who bought a ground floor flat in Cudham in November 2010. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative homes in Cudham with 100 year plus lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ran out on 28 March 2097. Considering the 71 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Cudham premises 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 unexpired term was 50.57 years.