The closer a domestic lease in Cubitt Town nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years remaining then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Cubitt Town will qualify for this right; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cubitt Town can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 dealing with 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.
Following protracted negotiations with the landlord of her one bedroom flat in Cubitt Town, Laura initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work was concluded in June 2011. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were contacted by Mr and Mrs. M García , who purchased a garden flat in Cubitt Town in January 2012. We are asked if we could estimate the premium would be to extend the lease by 90 years. Similar premises in Cubitt Town with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed every twelve months. The lease expired on 2 May 2105. Considering the 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 exclusive of expenses.
An example of a Freehold Enfranchisement decision for a Cubitt Town flat 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 affected 3 flats. The remaining number of years on the lease was 101.61 years.