The market value of Cippenham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Cippenham,the lease extension experts 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 Cippenham valuers.
Trailing protracted correspondence with the landlord of her leasehold flat in Cippenham, Mia started the lease extension process as the 80 year mark was swiftly nearing. The legal work was concluded in October 2012. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. C Lee took over the lease of a ground floor apartment in Cippenham in October 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Cippenham with a long lease were valued around £265,000. The average ground rent payable was £50 billed quarterly. The lease ran out on 13 November 2099. Having 73 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Last month we were called by Mrs Paige Michel , who owned a recently refurbished apartment in Cippenham in February 1996. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar premises in Cippenham with a long lease were valued about £264,000. The mid-range ground rent payable was £60 collected per annum. The lease elapsed in 2079. Taking into account 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 not including fees.