With a residential leasehold premises in Cuckfield, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Anyone in Cuckfield with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. When the lease term has below eighty years left, under the current legislation the landlord can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold properties in Cuckfield with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Cuckfield can be a difficult process. We recommend you get professional help from a conveyancer 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 Cuckfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted discussions with the landlord of her one bedroom apartment in Cuckfield, Gemma started the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension completed in June 2005. The landlord’s charges were negotiated to slightly above 450 GBP.
Mr Elijah Bailey purchased a basement flat in Cuckfield in January 2002. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Cuckfield with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 billed annually. The lease expiry date was on 23 October 2076. Considering the 51 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including expenses.
In 2011 we were e-mailed by Mr Nathan Moore who, having acquired a studio flat in Cuckfield in November 1998. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar homes in Cuckfield with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished in 2096. Given that there were 71 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.