When it comes to long leasehold property in Caterham, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Caterham with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Caterham with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Caterham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Caterham valuers.
Following lengthy discussions with the landlord of her basement apartment in Caterham, Holly commenced the lease extension process as the 80 year threshold was quickly nearing. The legal work was finalised in March 2014. The landlord’s costs were negotiated to about 700 pounds.
In 2012 we were called by Dr Finn Adams who, having moved into a ground floor apartment in Caterham in January 2002. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable premises in Caterham with 100 year plus lease were in the region of £206,200. The mid-range amount of ground rent was £60 billed monthly. The lease finished in 2082. Given that there were 56 years left we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Caterham flat is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case affected 3 flats. The unexpired term was 75 years.