As the the remaining lease term of a Caddington domestic lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Caddington will qualify for this right; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Caddington can be a difficult process. We recommend you secure guidance 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 Mason, started to get near to the eighty-year mark with the lease on his studio flat in Caddington. Having purchased his home 18 years previously, the unexpired term was of minimal bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Mason was able to extend his lease just under the wire in July. Mason and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If the lease had fallen to less than 80 years, the sum would have become more costly by a minimum £1,025.
In 2009 we were contacted by Dr Caitlin Clarke who, having owned a basement apartment in Caddington in October 2003. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Caddington with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expiry date was in 2089. Given that there were 63 years remaining we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including professional charges.
Last Autumn we were contacted by Mr C Bailey , who was assigned a lease of a one bedroom flat in Caddington in April 1995. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar homes in Caddington with a long lease were in the region of £265,000. The mid-range ground rent payable was £55 billed quarterly. The lease ran out on 17 August 2100. Having 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.