The market value of Caddington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the unexpired lease term is less than 80 years
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Caddington,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 Caddington valuers.
Isaac owned a studio apartment in Caddington on the market with a lease of fraction over sixty years left. Isaac informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Ms O Morgan bought a ground floor apartment in Caddington in April 1998. The dilemma was if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Caddington with 100 year plus lease were in the region of £235,200. The average ground rent payable was £45 collected every twelve months. The lease ended on 1 April 2091. Having 66 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.
Last month we were e-mailed by Mr and Mrs. L Evans , who bought a one bedroom flat in Caddington in July 1996. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Similar residencies in Caddington with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced monthly. The lease finished in 2102. Having 77 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.