Cippenham leases on residential deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Cippenham will usually be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cippenham with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Cippenham can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Cippenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Tommy, came perilously near to the eighty-year threshold with the lease on his one bedroom flat in Cippenham. In buying his flat two decades ago, the lease term was of no interest. by good luck, he realised he would soon be paying way over the odds for Extending the lease. Tommy was able to extend his lease just ahead of time in May. Tommy and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,050.
Last Christmas we were called by Dr Aarav Nguyen , who purchased a ground floor apartment in Cippenham in April 2012. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative premises in Cippenham with 100 year plus lease were valued about £193,400. The average amount of ground rent was £65 collected yearly. The lease ended on 17 November 2084. Considering the 59 years unexpired we approximated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Last Summer we were contacted by Dr Ibrahim Torres , who acquired a studio flat in Cippenham in February 2006. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparable residencies in Cippenham with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2095. Given that there were 70 years unexpired we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of expenses.