There is no doubt about it a leasehold property in Cuffley is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years to run then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Most flat owners in Cuffley will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Cuffley,the lease extension lawyers 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 Cuffley valuers.
Trailing unsuccessful correspondence with the freeholder of her ground floor apartment in Cuffley, Robyn started the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension was concluded in May 2010. The freeholder’s fees were negotiated to less than 500 pounds.
Mr and Mrs. T Scott moved into a basement apartment in Cuffley in May 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical homes in Cuffley with 100 year plus lease were worth £290,000. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded in 2098. Considering the 72 years left we approximated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including professional charges.
Last May we were called by Dr Alexandra Martínez , who owned a first floor flat in Cuffley in June 2012. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Cuffley with an extended lease were valued about £233,200. The mid-range ground rent payable was £60 billed yearly. The lease termination date was in 2087. Given that there were 61 years left we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus professional charges.