The re-sale value of a leasehold property in Cubitt Town depends on how long the lease has remaining. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be finalised well before the 80 year cut off point. Statute enables Cubitt Town qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Cubitt Town with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cubitt Town can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 procuring Cubitt Town lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Kai, started to get near to the 80-year mark with the lease on his basement apartment in Cubitt Town. In buying his flat 18 years ago, the lease term was of no relevance. Thankfully, he realised he needed to take steps soon on a lease extension. Kai extended the lease at the eleventh hour in September. Kai and the landlord in the end settled on an amount of £6,000 . If the lease had dipped to less than 80 years, the amount would have increased by a minimum £875.
In 2014 we were approached by Mrs Melissa Norbert who, having moved into a ground floor apartment in Cubitt Town in October 1997. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar homes in Cubitt Town with an extended lease were worth £206,200. The mid-range ground rent payable was £60 billed quarterly. The lease expired in 2082. Having 56 years as a residual term we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.
An example of a Freehold Enfranchisement decision for a Cubitt Town residence is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case related to 3 flats. The unexpired term was 101.61 years.