With a residential leasehold premises in Cudham, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years remaining. Residents in Cudham with a lease nearing 81 years remaining should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current legislation the landlord can calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Cudham 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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.
Toby was the the leasehold proprietor of a studio apartment in Cudham being sold with a lease of a little over 59 years remaining. Toby 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 agree 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 increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr and Mrs. T King took over the lease of a newly refurbished apartment in Cudham in September 2000. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar properties in Cudham with an extended lease were valued around £246,800. The average ground rent payable was £60 collected annually. The lease ended in 2076. Taking into account 50 years unexpired we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus expenses.
An example of a Lease Extension decision for a Cudham property 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 unexpired term as at the valuation date was 50.57 years.