Cippenham leases on residential deteriorating in value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Cippenham will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Cippenham with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Virgin |
The lawyers that we work with undertake Cippenham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Ibrahim, came dangerously near to the eighty-year mark with the lease on his leasehold flat in Cippenham. Having purchased his flat 19 years ago, the lease term was of little relevance. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Ibrahim extended the lease at the eleventh hour last August. Ibrahim and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dipped to less than 80 years, the price would have gone up by a minimum £900.
Last Spring we were phoned by Mr L Martinez , who bought a recently refurbished apartment in Cippenham in July 1995. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Cippenham with an extended lease were valued about £245,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed in 2094. Considering the 68 years remaining we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last month we were contacted by Ms Caitlin Laurent , who acquired a one bedroom flat in Cippenham in July 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable properties in Cippenham with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed every twelve months. The lease came to a finish in 2105. Given that there were 79 years left we calculated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.