Caversham leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Caversham will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
Leasehold properties in Caversham with in excess of one hundred years outstanding 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 to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with handle 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.
Oscar owned a studio apartment in Caversham on the market with a lease of fraction over 59 years remaining. Oscar informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Last month we were approach by Ms Amelia Wright , who completed a garden flat in Caversham in January 2010. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Comparative properties in Caversham with an extended lease were valued around £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out in 2079. Taking into account 53 years left we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of costs.
In 2012 we were called by Dr T Petit who, having took over the lease of a recently refurbished apartment in Caversham in November 2004. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Similar residencies in Caversham with 100 year plus lease were worth £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease lapsed on 18 July 2089. Considering the 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including professional charges.