Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Cockermouth. Clearly, the term of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Cockermouth have the legal entitlement to extend the lease for a further 90 years under statute. Please give careful deliberation before putting off your Cockermouth lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold residencies in Cockermouth with over one hundred years outstanding 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
Lender | Requirement |
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Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start 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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Cockermouth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joseph owned a high value apartment in Cockermouth on the market with a lease of a few days over 72 years outstanding. Joseph informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to invoke his statutory right. Joseph obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last year we were e-mailed by Dr T Campbell , who owned a basement apartment in Cockermouth in July 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparable homes in Cockermouth with a long lease were worth £206,200. The average amount of ground rent was £60 invoiced monthly. The lease terminated on 13 February 2080. Having 56 years remaining we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including professional charges.
In 2012 we were called by Mr L Thomas who, having moved into a purpose-built apartment in Cockermouth in October 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Cockermouth with an extended lease were valued around £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded in 2100. Considering the 76 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.