The nearer a residential lease in Caddington nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Caddington will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| 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 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 a wealth of experience 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.
Following protracted correspondence with the landlord of her studio flat in Caddington, Ella started the lease extension process as the eighty year deadline was swiftly approaching. The lease extension was concluded in February 2014. The freeholder’s fees were negotiated to approximately 650 pounds.
Last Spring we were e-mailed by Mr and Mrs. E Mercier , who completed a one bedroom flat in Caddington in February 2006. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Similar properties in Caddington with an extended lease were worth £275,000. The mid-range amount of ground rent was £55 collected per annum. The lease expired on 17 January 2101. Having 76 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Last Spring we were called by Dr F Richardson , who purchased a one bedroom flat in Caddington in September 1999. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Caddington with an extended lease were valued about £176,200. The average ground rent payable was £65 collected monthly. The lease lapsed in 2081. Given that there were 56 years outstanding we estimated the premium to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of expenses.