Caldicot leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Caldicot tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Caldicot you must investigate if your lease has between 70 and ninety years remaining. There are good reasons why a Caldicot flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is actioned without delay
Leasehold properties in Caldicot with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Caldicot 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.
Last Spring Jason, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Caldicot. In buying his property twenty years previously, the unexpired term was of no relevance. Luckily, he became aware that he would soon be paying way over the odds for Extending the lease. Jason arranged for a lease extension just under the wire last July. Jason and the landlord subsequently settled on an amount of £6,000 . If he not met the deadline, the sum would have become more exhorbitant by a minimum £1,000.
Mrs Charlotte Simon bought a studio flat in Caldicot in May 2000. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative residencies in Caldicot with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced annually. The lease finished in 2101. Considering the 76 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.
Mrs Courtney Adams bought a garden apartment in Caldicot in November 2000. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Similar premises in Caldicot with 100 year plus lease were valued around £176,200. The average ground rent payable was £65 billed every twelve months. The lease ran out on 18 September 2081. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of costs.