The nearer a residential lease in Cudham nears to zero years unexpired, the more it reduces the value of the property. If the lease has, more than one hundred years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. Many flat owners in Cudham will meet the qualifying criteria; that being said a conveyancing solicitor can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | 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. |
Regardless of whether you are a tenant or a freeholder in Cudham,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 experience and the close ties they enjoy with Cudham valuers.
In 2014 Cameron, came critically close to the 80-year mark with the lease on his ground floor apartment in Cudham. Having bought his property two decades ago, the length of the lease was of no interest. As luck would have it, he became aware that he would soon be paying an inflated amount for a lease extension. Cameron extended the lease just under the wire last August. Cameron and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £1,150.
In 2012 we were contacted by Mr Isaac Bell who, having took over the lease of a purpose-built apartment in Cudham in May 2010. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparative residencies in Cudham with a long lease were in the region of £232,800. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish in 2091. Taking into account 65 years as a residual term we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
An example of a Lease Extension decision for a Cudham flat 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 affected 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.