There is no doubt about it a leasehold flat or house in Cudworth is a wasting asset as a result of the diminishing lease term. Where the residual term has, over 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease sooner than later. The majority of flat owners in Cudworth will meet the qualifying criteria; however a lawyer will be able to advise whether you qualify to extend your lease. In certain 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 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cudworth can be a difficult process. We recommend you procure professional help from a lawyer and valuer 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 in-depth market knowledge procuring Cudworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Sebastian, came seriously close to the 80-year threshold with the lease on his studio flat in Cudworth. In buying his property 19 years previously, the unexpired term was of no concern. As luck would have it, he recognised he needed to take action soon on a lease extension. Sebastian extended the lease at the eleventh hour in May. Sebastian and the landlord eventually settled on a premium of £6,000 . If the lease had gone lower than 80 years, the sum would have gone up by at least £1,050.
In 2010 we were e-mailed by Ms P Campbell who, having bought a basement apartment in Cudworth in April 2007. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Identical residencies in Cudworth with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 billed every twelve months. The lease ended in 2082. Considering the 57 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of expenses.
Mr and Mrs. G Martinez moved into a one bedroom apartment in Cudworth in August 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable premises in Cudworth with 100 year plus lease were worth £245,000. The average ground rent payable was £50 billed quarterly. The lease ended on 24 June 2093. Given that there were 68 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.