When it comes to residential leasehold property in Cippenham, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Leasehold owners in Cippenham with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years remaining, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Cippenham with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Cippenham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cippenham valuers.
Subsequent to lengthy correspondence with the freeholder of her studio flat in Cippenham, Chantelle commenced the lease extension process just as her lease was approaching the crucial eighty-year threshold. The transaction was finalised in November 2008. The freeholder’s fees were restricted to under 700 pounds.
In 2010 we were phoned by Mr Dylan Smith who, having took over the lease of a one bedroom flat in Cippenham in October 2011. The dilemma was if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Cippenham with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced per annum. The lease came to a finish on 6 October 2091. Given that there were 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Mr and Mrs. I Adams moved into a purpose-built apartment in Cippenham in January 2010. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Cippenham with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease came to a finish in 2102. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.