Cudworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Cudworth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Cudworth you must investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Cudworth with more than one hundred years outstanding 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Cudworth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Liam, came seriously near to the 80-year mark with the lease on his purpose- built apartment in Cudworth. Having purchased his flat twenty years previously, the length of the lease was of little significance. Luckily, he noticed he needed to take action soon on Extending the lease. Liam arranged for a lease extension just in the nick of time in August. Liam and the landlord who owned the flat above in the end agreed on a premium of £5,500 . If the lease had dipped lower than 80 years, the price would have escalated by at least £925.
Last July we were called by Dr Nathan André , who purchased a basement flat in Cudworth in May 2001. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Cudworth with an extended lease were in the region of £265,000. The average ground rent payable was £55 collected yearly. The lease expired in 2100. Having 74 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were e-mailed by Mr and Mrs. H Anderson who, having was assigned a lease of a first floor apartment in Cudworth in September 2003. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical properties in Cudworth with an extended lease were valued about £166,400. The average ground rent payable was £60 billed annually. The lease concluded on 13 February 2080. Given that there were 54 years as a residual term we calculated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus legals.