For those whose Cubitt Town flat is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
|Bank of Scotland|| Minimum 70 years from the date of the mortgage.|
|Birmingham Midshires|| 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.|
|Godiva Mortgages||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.|
|Skipton Building Society|| 85 years from the date of completion of the mortgage|
For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
Irrespective of whether you are a tenant or a freeholder in Cubitt Town,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cubitt Town valuers.
Off the back of lengthy negotiations with the freeholder of her leasehold flat in Cubitt Town, Georgina initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was concluded in April 2014. The freeholder’s fees were kept to an absolute minimum.
Mr George Gunderson moved into a recently refurbished flat in Cubitt Town in April 2010. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Cubitt Town with an extended lease were valued about £295,000. The average amount of ground rent was £50 billed yearly. The lease lapsed on 2 October 2095. Given that there were 75 years remaining we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement decision for a Cubitt Town property 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 was in relation to 3 flats. The unexpired residue of the current lease was 101.61 years.