Caversham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Caversham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Caversham you should check if your lease has between 70 and ninety years left. There are good reasons why a Caversham flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years in the future.
|Bank of Scotland||Minimum 70 years from the date of the mortgage.|
|Barclays plc||Mortgage term plus 25 years provided that leases of less than 85 years are be referred to us for approval.|
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|Leeds Building Society||85 years remaing from the start 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
The conveyancing solicitors that we work with procure Caversham 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.
John owned a 2 bedroom apartment in Caversham being marketed with a lease of a little over sixty years left. John informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Last Winter we were approach by Ms H Moore , who was assigned a lease of a studio apartment in Caversham in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Comparative properties in Caversham with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced monthly. The lease expired in 2096. Given that there were 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
In 2013 we were called by Dr O Davies who, having purchased a studio flat in Caversham in April 1998. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by ninety years. Comparative premises in Caversham with an extended lease were worth £173,800. The mid-range ground rent payable was £60 collected quarterly. The lease came to a finish on 2 February 2076. Taking into account 55 years remaining we estimated the premium to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.