When it comes to long leasehold property in Cudham, you are actually purchasing an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than eighty years remaining. Anyone in Cudham with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below 80 years left, under the relevant Act the landlord is entitled to calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold properties in Cudham with in excess of 100 years remaining on the lease are often regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Cudham,the lease extension experts 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.
Gabriel was the the leasehold proprietor of a 2 bedroom apartment in Cudham on the market with a lease of fraction over sixty years unexpired. Gabriel informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
In 2014 we were called by Mr L Bell who, having purchased a ground floor flat in Cudham in April 1998. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Cudham with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed on 18 March 2094. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be between £10,500 and £12,000 plus fees.
An example of a Lease Extension matter before the tribunal 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 lease term was 50.57 years.