For those whose Cuffley property is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension.
Leasehold properties in Cuffley with more than 100 years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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.
Last Winter Zachary, started to get close to the 80-year mark with the lease on his one bedroom flat in Cuffley. Having bought his flat two decades ago, the unexpired term was of minimal bearing. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Zachary was able to extend his lease just under the wire in May. Zachary and the freeholder via the managing agents in the end settled on the final figure of £5,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,050.
Last year we were approach by Dr U Davies , who completed a first floor apartment in Cuffley in August 2000. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative flats in Cuffley with a long lease were in the region of £230,800. The mid-range amount of ground rent was £60 invoiced annually. The lease ended in 2086. Considering the 60 years remaining we estimated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including fees.
Last Summer we were e-mailed by Mr and Mrs. F Bailey , who completed a garden apartment in Cuffley in July 1996. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Cuffley with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expiry date was on 2 October 2106. Given that there were 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.