The nearer a residential lease in Caddington nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Caddington will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Retaining our service gives you increased control over the value of your Caddington leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Caleb owned a high value apartment in Caddington being marketed with a lease of a little over 59 years left. Caleb informally approached his freeholder being a well known Manchester-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 rise in the rent to £125 annually. No ground rent would be due on a lease extension were Caleb to exercise his statutory right. Caleb procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and readily saleable.
In 2010 we were called by Mr and Mrs. B Murphy who, having was assigned a lease of a garden apartment in Caddington in June 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Caddington with a long lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease elapsed in 2101. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last month we were e-mailed by Mrs B López , who owned a garden flat in Caddington in October 1999. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Comparable premises in Caddington with a long lease were in the region of £176,200. The average ground rent payable was £65 billed annually. The lease ran out in 2081. Having 56 years outstanding we approximated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus professional charges.