When it comes to residential leasehold premises in Caddington, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Caddington with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once the lease term has under eighty years outstanding, under the relevant statute the freeholder can calculate and charge a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Caddington with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Caddington can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Caddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Callum, came dangerously near to the eighty-year threshold with the lease on his two bedroom apartment in Caddington. In buying his property two decades ago, the length of the lease was of minimal bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Callum extended the lease just ahead of time in April. Callum and the freeholder eventually agreed on an amount of £5,000 . If the lease had descended below eighty years, the price would have increased by at least £950.
Last Spring we were contacted by Ms M Bailey , who was assigned a lease of a one bedroom flat in Caddington in September 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable homes in Caddington with an extended lease were in the region of £261,600. The average ground rent payable was £60 collected yearly. The lease terminated on 17 August 2078. Taking into account 52 years left we estimated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus professional charges.
In 2011 we were e-mailed by Mr and Mrs. P García who, having was assigned a lease of a recently refurbished flat in Caddington in July 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Caddington with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed in 2089. Given that there were 63 years unexpired we calculated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus legals.