Caddington leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Leasehold owners in Caddington will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Caddington with over 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Caddington,the lease extension solicitors 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 Caddington valuers.
Off the back of unsuccessful discussions with the freeholder of her two bedroom flat in Caddington, Harriet initiated the lease extension process as the eighty year mark was quickly advancing. The transaction was concluded in August 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. I Khan owned a garden flat in Caddington in November 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparative residencies in Caddington with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 collected monthly. The lease ended in 2093. Taking into account 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 not including fees.
Last Winter we were phoned by Mr H King , who took over the lease of a purpose-built apartment in Caddington in May 2000. The question was if we could approximate the price would be for a ninety year extension to my lease. Similar residencies in Caddington with 100 year plus lease were in the region of £280,000. The average ground rent payable was £55 invoiced yearly. The lease terminated on 24 January 2104. Given that there were 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.