For anyone whose Cimla property is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 freeholder in Cimla,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cimla valuers.
In the wake of 6 months of protracted discussions with the landlord of her basement flat in Cimla, Natasha started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension was concluded in November 2006. The freeholder’s charges were restricted to below 600 GBP.
Mr and Mrs. I Laurent was assigned a lease of a purpose-built apartment in Cimla in June 2010. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar homes in Cimla with an extended lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease finished on 9 September 2103. Given that there were 77 years remaining we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Last Winter we were contacted by Mrs E Brooks , who completed a one bedroom apartment in Cimla in June 2010. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Cimla with an extended lease were worth £181,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease finished in 2082. Taking into account 56 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of fees.