For those whose Caddington property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Halifax | |
| Leeds Building Society |
Regardless of whether you are a tenant or a freeholder in Caddington,the lease extension solicitors 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 Caddington valuers.
Last October Jude, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Caddington. In buying his property twenty years ago, the length of the lease was of minimal relevance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Jude extended the lease just under the wire in August. Jude and the freeholder via the managing agents in the end settled on the final figure of £5,500 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £1,075.
Mr and Mrs. Y Michel moved into a one bedroom flat in Caddington in July 2004. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparable premises in Caddington with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease termination date was in 2092. Considering the 66 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus fees.
In 2013 we were called by Mr and Mrs. E Bell who, having owned a one bedroom apartment in Caddington in May 2012. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative flats in Caddington with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 billed every twelve months. The lease terminated in 2103. Taking into account 77 years as a residual term we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.