Caversham leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Caversham will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Caversham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Caversham can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Caversham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Ethan, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Caversham. In buying his flat two decades ago, the lease term was of minimal significance. As luck would have it, he realised he would imminently be paying way over the odds for a lease extension. Ethan was able to extend his lease at the eleventh hour in May. Ethan and the freeholder via the managing agents in the end agreed on the final figure of £6,000 . If the lease had fallen below 80 years, the figure would have become more exhorbitant by at least £1,000.
Mr I Hernández completed a garden flat in Caversham in May 2010. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Caversham with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease expired on 6 February 2103. Taking into account 79 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
Dr David Morgan bought a basement flat in Caversham in May 1997. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable properties in Caversham with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded in 2083. Given that there were 59 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.