Caversham Heights residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Caversham Heights 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.
After unsuccessful negotiations with the landlord of her garden apartment in Caversham Heights, Amber initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work was concluded in November 2008. The freeholder’s charges were restricted to approximately 650 pounds.
In 2010 we were phoned by Dr Jasper Sharif who, having completed a purpose-built flat in Caversham Heights in March 1998. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical flats in Caversham Heights with 100 year plus lease were in the region of £270,000. The average amount of ground rent was £55 collected monthly. The lease concluded in 2100. Taking into account 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
In 2014 we were called by Mr H Petit who, having took over the lease of a one bedroom apartment in Caversham Heights in July 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable properties in Caversham Heights with a long lease were valued around £168,800. The average amount of ground rent was £60 billed quarterly. The lease ended in 2080. Having 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.