Cimla leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be payable. Flat owners in Cimla will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In certain cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cimla with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you better control over the value of your Cimla leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dexter owned a high value flat in Cimla on the market with a lease of a little over sixty years remaining. Dexter on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Mrs Y Parker owned a first floor flat in Cimla in April 1998. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical flats in Cimla with 100 year plus lease were worth £270,000. The average ground rent payable was £55 invoiced quarterly. The lease ran out in 2100. Given that there were 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Autumn we were contacted by Dr Jonathan García , who moved into a ground floor flat in Cimla in September 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Identical premises in Cimla with an extended lease were worth £168,800. The average amount of ground rent was £60 invoiced annually. The lease ended on 14 February 2080. Taking into account 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.