The re-sale value of a leasehold property in Cawthorne is impacted by how long the lease has left to run. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be addressed well before the 80 year cut off point. Leasehold Reform legislation enables Cawthorne qualifying lessees to a 90 year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Cawthorne,the lease extension experts 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 Cawthorne valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her studio flat in Cawthorne, Hannah commenced the lease extension process as the eighty year mark was rapidly approaching. The legal work was concluded in March 2010. The landlord’s costs were kept to an absolute minimum.
In 2009 we were contacted by Dr Dylan Adams who, having owned a garden flat in Cawthorne in July 1997. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparable flats in Cawthorne with an extended lease were valued around £250,000. The average amount of ground rent was £50 collected every twelve months. The lease lapsed in 2095. Having 69 years remaining we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2010 we were contacted by Mr S Green who, having completed a basement flat in Cawthorne in June 2003. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Cawthorne with a long lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2106. Considering the 80 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.