It’s a harsh truth that a Cippenham residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Cippenham property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cippenham will be able to extend under the legislation; however a lawyer will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Cippenham with in excess of one hundred 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date 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. |
Using our service will provide you enhanced control over the value of your Cippenham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Daniel owned a high value flat in Cippenham on the market with a lease of fraction over 59 years unexpired. Daniel on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
In 2011 we were phoned by Mr Leon Hall who, having acquired a one bedroom flat in Cippenham in April 2008. The question was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Cippenham with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected per annum. The lease came to a finish on 28 March 2079. Considering the 54 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Last Summer we were called by Mrs Y Martínez , who moved into a ground floor flat in Cippenham in February 2012. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical properties in Cippenham with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 8 April 2090. Given that there were 65 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.