Cudham leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Cudham will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Cudham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cudham valuers.
Subsequent to protracted discussions with the landlord of her basement flat in Cudham, Abigail initiated the lease extension process as the 80 year deadline was rapidly coming. The transaction was concluded in January 2011. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. I Sánchez who, having purchased a purpose-built flat in Cudham in July 2008. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar properties in Cudham with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £60 collected per annum. The lease ran out on 28 August 2106. Given that there were 80 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The unexpired term was 50.57 years.