Cubitt Town Lease Extension - Free Consultation

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Main reasons to commence your Cubitt Town lease extension

Main reasons to commence your Cubitt Town lease extension today:

A Cubitt Town leasehold property depreciates with the years remaining on the lease.

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.

Cubitt Town property with a lease extension is almost the same value as a freehold

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.

Lending institutions may decide not to lend with a short lease

Most banks have tightened lending criteria in the last ten years and borrowers are encountering difficulties in arranging finance or re-mortgage against flats with shorter lease terms, particularly below seventy years as they are regarded as unacceptable security.

Lender Requirement
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

Why use us for your lease extension in Cubitt Town?

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.

Cubitt Town Lease Extension Example Cases:

Georgina, Cubitt Town, London,

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.

Cubitt Town case:

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.

Decision in Southwark

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.