As the length of the unexpired term of a Caversham Heights residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 125 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Caversham Heights will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
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 lawyer we work with provide it.
Two years ago Aiden, started to get near to the 80-year threshold with the lease on his studio apartment in Caversham Heights. In buying his home twenty years ago, the length of the lease was of little significance. by good luck, he noticed he would soon be paying an inflated amount for a lease extension. Aiden extended the lease just under the wire in July. Aiden and the freeholder ultimately settled on a premium of £5,500 . If the lease had dipped below 80 years, the price would have become more exhorbitant by at least £875.
In 2009 we were approached by Mrs T Collins who, having took over the lease of a first floor flat in Caversham Heights in August 2010. The question was if we could approximate the price would likely be to extend the lease by a further 90 years. Comparative flats in Caversham Heights with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 billed annually. The lease concluded on 23 April 2096. Given that there were 70 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
Ms Hannah Nelson took over the lease of a one bedroom apartment in Caversham Heights in June 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Caversham Heights with 100 year plus lease were in the region of £246,800. The mid-range ground rent payable was £60 collected quarterly. The lease elapsed in 2076. Given that there were 50 years outstanding we calculated the premium to the landlord for the lease extension to be between £44,700 and £51,600 plus expenses.