When it comes to domestic leasehold premises in Caversham, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Residents in Caversham with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has fewer than 80 years left, under the current Act the landlord can calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Caversham,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 Caversham valuers.
Joseph owned a high value apartment in Caversham being marketed with a lease of a little over 72 years left. Joseph informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2014 we were e-mailed by Dr N Bernard who, having acquired a one bedroom flat in Caversham in November 2001. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar residencies in Caversham with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 billed quarterly. The lease elapsed on 10 September 2080. Having 54 years remaining we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.
Dr T Bailey bought a garden apartment in Caversham in July 2010. We are asked if we could approximate the price would be for a ninety year lease extension. Similar premises in Caversham with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 collected yearly. The lease ended in 2091. Taking into account 65 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.