Caversham Heights leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Leasehold owners in Caversham Heights will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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 be at least 75 years plus the term of the mortgage 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. |
The lawyers that we work with handle 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.
In recent months Harrison, came very close to the eighty-year mark with the lease on his one bedroom flat in Caversham Heights. Having bought his flat two decades ago, the unexpired term was of little concern. Luckily, he noticed he would soon be paying an inflated amount for Extending the lease. Harrison extended the lease just under the wire in August. Harrison and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had slid below 80 years, the sum would have increased by at least £1,075.
Dr I Young took over the lease of a first floor apartment in Caversham Heights in January 2012. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable premises in Caversham Heights with an extended lease were valued around £218,000. The mid-range ground rent payable was £45 collected per annum. The lease lapsed in 2089. Given that there were 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 plus expenses.
In 2013 we were e-mailed by Mr and Mrs. V Fournier who, having moved into a purpose-built apartment in Caversham Heights in August 2012. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative properties in Caversham Heights with a long lease were in the region of £265,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish in 2100. Given that there were 74 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.