The only way is down when it comes to Cimla lease terms. Cimla flats that have a lease term fewer than 80 years will drop in value at a rapid rate, and the cost of extending your lease will increase.
Leasehold residencies in Cimla with over one hundred years remaining 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 property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Cimla leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harrison was the the leasehold owner of a conversion apartment in Cimla being marketed with a lease of a little over fifty eight years remaining. Harrison on an informal basis approached his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Autumn we were contacted by Dr Ella Morel , who acquired a ground floor flat in Cimla in February 2011. The question was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Cimla with an extended lease were valued around £198,400. The average ground rent payable was £65 invoiced yearly. The lease terminated on 10 October 2085. Having 59 years as a residual term we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.
Ms W Martinez owned a garden apartment in Cimla in November 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparative homes in Cimla with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expiry date was in 2096. Considering the 70 years remaining we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.