With a long leasehold property in Cudham, you are actually purchasing 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 lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Residents in Cudham with a lease approaching 81 years unexpired should seriously consider extending it without delay. Once the lease term has under 80 years remaining, under the current Act the freeholder can calculate and demand a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Cudham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cudham valuers.
During the course of the last few months Harvey, came seriously near to the eighty-year mark with the lease on his ground floor apartment in Cudham. Having bought his property 19 years ago, the unexpired term was of minimal significance. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Harvey was able to extend his lease at the eleventh hour last August. Harvey and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If he not met the deadline, the figure would have become more costly by a minimum £925.
Mr and Mrs. W Williams owned a purpose-built apartment in Cudham in July 2007. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Cudham with a long lease were worth £255,000. The average ground rent payable was £50 collected every twelve months. The lease concluded on 7 February 2095. Given that there were 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
An example of a Lease Extension decision for a Cudham premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The unexpired term as at the valuation date was 50.57 years.