Cilcain leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Cilcain will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and steps to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Cilcain,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 Cilcain valuers.
Ethan was the the leasehold owner of a high value flat in Cilcain being marketed with a lease of fraction over 72 years remaining. Ethan informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2012 we were contacted by Dr Michael Bernard who, having moved into a ground floor flat in Cilcain in May 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical residencies in Cilcain with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed yearly. The lease ended on 17 October 2091. Given that there were 65 years unexpired we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including fees.
In 2011 we were e-mailed by Dr R Davis who, having owned a ground floor flat in Cilcain in March 2011. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Cilcain with a long lease were worth £275,000. The average amount of ground rent was £55 billed per annum. The lease finished on 9 August 2102. Considering the 76 years as a residual term we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.