The market value of Cudworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than eighty years
Leasehold properties in Cudworth with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Cudworth,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cudworth valuers.
Felix was the the leasehold proprietor of a 2 bedroom flat in Cudworth being sold with a lease of fraction over fifty eight years left. Felix on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Felix to invoke his statutory right. Felix procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
In 2010 we were e-mailed by Dr F Wilson who, having was assigned a lease of a newly refurbished flat in Cudworth in January 2004. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Cudworth with 100 year plus lease were worth £173,800. The average ground rent payable was £60 collected every twelve months. The lease expired in 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. K Nelson bought a purpose-built apartment in Cudworth in July 2000. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical properties in Cudworth with an extended lease were valued about £235,200. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded on 18 February 2092. Considering the 66 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.