Caversham leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin paying 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 certain cases you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Caversham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Caversham valuers.
Half a year ago Stanley, came precariously close to the eighty-year mark with the lease on his purpose- built flat in Caversham. In buying his flat 19 years ago, the lease term was of no interest. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Stanley extended the lease at the eleventh hour in September. Stanley and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he failed to meet the deadline, the sum would have gone up by at least £1,000.
In 2010 we were phoned by Mr and Mrs. Y Jones who, having bought a studio flat in Caversham in October 1995. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical residencies in Caversham with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 collected monthly. The lease terminated on 21 November 2092. Considering the 66 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
Last Summer we were contacted by Ms U Lambert , who completed a studio flat in Caversham in May 2008. The question was if we could approximate the premium would be for a ninety year lease extension. Identical properties in Caversham with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 21 October 2103. Considering the 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.