Cudham Lease Extension - Free Consultation

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Main reasons to start your Cudham lease extension


Top reasons for lease extension now:

Increase your lease and increase your Cudham property value

The market value of a leasehold property in Cudham depends on how many years the lease has left to run. If it is close to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years remaining so that formalities can be finalised ahead of the 80 year mark. Current legislation enables Cudham qualifying lessees to an additional term of ninety years over and above the remaining term, at a notional rent (no ground rent). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.

An extended lease has roughly the same value as a freehold

Leasehold residencies in Cudham with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.

Lenders will not lend on a short lease

Most banks have narrowed their lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under 75 years as they are regarded as insufficient for lending purposes.

Lender Requirement
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.
National Westminster Bank Mortgage term plus 30 years.
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
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.

Why use us for your lease extension in Cudham?

Engaging our service will provide you better control over the value of your Cudham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Cudham Lease Extension Case Studies:

Liam, Cudham, South East London

In 2014 Liam, came critically close to the 80-year mark with the lease on his purpose- built apartment in Cudham. In buying his flat two decades ago, the length of the lease was of little concern. Thankfully, he noticed he would imminently be paying way over the odds for a lease extension. Liam arranged for a lease extension at the eleventh hour last July. Liam and the freeholder via the management company subsequently agreed on sum of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,025.

Cudham case:

Mrs Jasmine Díaz acquired a one bedroom apartment in Cudham in March 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative properties in Cudham with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2096. Taking into account 72 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.

Decision in Bromley

An example of a Lease Extension case 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 was in relation to 1 flat. The unexpired residue of the current lease was 50.57 years.