The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Cippenham may extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Cippenham lease extension. Putting off the costs today simply increases the amount you will eventually have to pay for a lease extension.
Leasehold residencies in Cippenham with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
Engaging our service will provide you increased 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 lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Luke, came critically close to the 80-year threshold with the lease on his one bedroom flat in Cippenham. Having bought his flat 19 years ago, the length of the lease was of no bearing. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Luke arranged for a lease extension just ahead of time in May. Luke and the freeholder eventually settled on the final figure of £5,000 . If the lease had dropped below 80 years, the premium would have become more exhorbitant by at least £875.
Last month we were phoned by Ms B Morel , who purchased a garden flat in Cippenham in July 2011. The dilemma was if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Cippenham with an extended lease were valued about £208,200. The mid-range ground rent payable was £65 billed quarterly. The lease ran out on 2 September 2087. Taking into account 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus legals.
Dr Sebastian Bell was assigned a lease of a first floor flat in Cippenham in August 1998. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical premises in Cippenham with a long lease were valued around £260,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished in 2098. Having 72 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.