When it comes to domestic leasehold property in Caddington, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Caddington with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Caddington with in excess of 100 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 freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Caddington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Jacob was the the leasehold proprietor of a high value flat in Caddington on the market with a lease of just over 72 years unexpired. Jacob informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last month we were phoned by Mr and Mrs. G Morgan , who was assigned a lease of a studio apartment in Caddington in May 1995. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar residencies in Caddington with a long lease were worth £246,800. The average amount of ground rent was £60 collected quarterly. The lease lapsed in 2076. Taking into account 50 years outstanding we approximated the premium to the freeholder to extend the lease to be between £44,700 and £51,600 not including professional charges.
Dr Victoria Pérez owned a basement apartment in Caddington in November 2008. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Caddington with 100 year plus lease were valued about £208,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease ended in 2087. Taking into account 61 years remaining we calculated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.