For anyone whose Cippenham home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Cippenham with more than 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cippenham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Cippenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy correspondence with the freeholder of her one bedroom flat in Cippenham, Georgina commenced the lease extension process as the 80 year threshold was rapidly coming. The legal work was concluded in June 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were called by Ms Isabel Girard who, having bought a studio flat in Cippenham in April 2010. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable homes in Cippenham with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed in 2106. Considering the 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including costs.
Last Autumn we were called by Mr and Mrs. E Cox , who acquired a one bedroom apartment in Cippenham in January 2000. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical premises in Cippenham with an extended lease were worth £200,800. The average amount of ground rent was £65 billed annually. The lease ran out on 4 February 2086. Taking into account 60 years left we calculated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 not including fees.