It’s an underpublicised certainty that a Cuffley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Cuffley property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Cuffley will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold residencies in Cuffley with in excess of 100 years left on the lease are sometimes referred to as ‘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 to be gained by 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 lawyers 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 conveyancer we work with provide it.
In recent months Kyle, came very close to the eighty-year mark with the lease on his two bedroom flat in Cuffley. Having bought his flat two decades ago, the unexpired term was of minimal relevance. Thankfully, he realised he needed to take action soon on Extending the lease. Kyle extended the lease at the eleventh hour last January. Kyle and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had descended lower than eighty years, the figure would have increased by a minimum £1,000.
In 2010 we were phoned by Dr Lucy Gray who, having acquired a first floor flat in Cuffley in June 2011. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable premises in Cuffley with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected monthly. The lease terminated in 2099. Considering the 74 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2014 we were phoned by Ms J Lewis who, having acquired a studio flat in Cuffley in October 2004. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical residencies in Cuffley with 100 year plus lease were in the region of £248,000. The average ground rent payable was £65 collected every twelve months. The lease lapsed in 2088. Given that there were 63 years left we approximated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.