There is no doubt about it a leasehold flat or house in Cudham is a wasting asset as a result of the diminishing lease term. Where the residual term has, beyond 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Most flat owners in Cudham will qualify for this right; however a conveyancing solicitor can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Cudham with in excess of 100 years outstanding 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 upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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.
Trailing lengthy negotiations with the freeholder of her two bedroom flat in Cudham, Laura initiated the lease extension process just as the lease was nearing the all-important eighty-year threshold. The transaction was concluded in January 2010. The freeholder’s fees were restricted to a tad over four hundred GBP.
Last Christmas we were contacted by Mr Kyle Morel , who moved into a one bedroom flat in Cudham in October 2002. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Cudham with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2102. Given that there were 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including 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 number of years remaining on the existing lease(s) was 50.57 years.