Cubitt Town leases on domestic properties are gradually losing value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Cubitt Town will mostly qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Cubitt Town with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Cubitt Town lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of eight months of lengthy correspondence with the landlord of her one bedroom flat in Cubitt Town, Anna initiated the lease extension process just as the lease was coming close to the critical 80-year mark. The lease extension was concluded in April 2007. The landlord’s costs were negotiated to approximately 600 GBP.
Dr Jennifer Morel bought a ground floor apartment in Cubitt Town in June 2010. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical properties in Cubitt Town with a long lease were valued about £295,000. The average amount of ground rent was £45 collected monthly. The lease terminated on 5 July 2101. Having 75 years outstanding we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.
An example of a Freehold Enfranchisement matter before the tribunal 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 was in relation to 3 flats. The number of years remaining on the existing lease(s) was 101.61 years.