Caddington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Caddington enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Caddington you should check if your lease has between 70 and 90 years remaining. There are good reasons why a Caddington flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Caddington with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Caddington can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Caddington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold proprietor of a studio apartment in Caddington being sold with a lease of a little over 72 years outstanding. Harvey informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert advice and secured an acceptable deal informally and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. L Rodríguez who, having completed a ground floor apartment in Caddington in October 2008. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Caddington with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 collected quarterly. The lease expired on 3 June 2078. Taking into account 53 years remaining we estimated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 exclusive of legals.
In 2009 we were phoned by Dr Alexander Roux who, having took over the lease of a newly refurbished flat in Caddington in June 2010. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar homes in Caddington with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 billed monthly. The lease ran out in 2089. Given that there were 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.