Caversham leases on domestic deteriorating in value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Caversham will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
Regardless of whether you are a tenant or a landlord in Caversham,the lease extension solicitors that we work with will always be willing 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.
Off the back of protracted discussions with the landlord of her one bedroom flat in Caversham, Erin initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The legal work was finalised in January 2011. The freeholder’s charges were kept to an absolute minimum.
Last July we were phoned by Mr and Mrs. L Anderson , who moved into a basement apartment in Caversham in September 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Caversham with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired in 2091. Having 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
In 2014 we were contacted by Ms R Lee who, having was assigned a lease of a studio apartment in Caversham in August 1997. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in Caversham with 100 year plus lease were valued around £285,000. The average ground rent payable was £55 billed annually. The lease terminated on 12 February 2102. Taking into account 80 years outstanding we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.