As the length of the unexpired term of a Cuffley residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than 125 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Cuffley will qualify for this right; that being said a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Cuffley with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with undertake Cuffley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Omar, came very close to the 80-year mark with the lease on his first floor flat in Cuffley. Having bought his flat 19 years ago, the unexpired term was of no significance. Thankfully, he realised he needed to take steps soon on a lease extension. Omar extended the lease at the eleventh hour last January. Omar and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £850.
In 2012 we were phoned by Ms T Stewart who, having was assigned a lease of a basement flat in Cuffley in June 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Cuffley with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 billed annually. The lease expired on 14 March 2105. Considering the 79 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Last Summer we were approach by Dr Stanley Bailey , who completed a purpose-built apartment in Cuffley in October 1998. The question was if we could estimate the price could be for a 90 year extension to my lease. Similar residencies in Cuffley with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease terminated on 6 November 2094. Given that there were 68 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.