Cubitt Town leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. 80 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. Flat owners in Cubitt Town will mostly be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cubitt Town can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience 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.
In 2014 Aaron, came perilously close to the 80-year mark with the lease on his purpose- built flat in Cubitt Town. Having bought his home 18 years previously, the lease term was of minimal bearing. Luckily, he became aware that he needed to take action soon on Extending the lease. Aaron arranged for a lease extension at the eleventh hour last March. Aaron and the landlord subsequently agreed on a premium of £6,000 . If the lease had dipped below 80 years, the premium would have become more exhorbitant by at least £900.
Mr and Mrs. R Jackson purchased a first floor apartment in Cubitt Town in March 2006. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Cubitt Town with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced quarterly. The lease came to a finish on 22 October 2080. Having 55 years unexpired we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Cubitt Town premises 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.