The market value of Cockermouth 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 escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Cockermouth with in excess of one hundred years unexpired 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Cockermouth 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.
Henry was the the leasehold owner of a studio flat in Cockermouth being sold with a lease of fraction over 59 years unexpired. Henry informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last month we were approach by Dr Jasper Lefebvre , who bought a basement flat in Cockermouth in July 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Cockermouth with an extended lease were valued about £280,000. The average ground rent payable was £45 billed quarterly. The lease expired in 2097. Considering the 71 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
Mr and Mrs. I Miller bought a studio flat in Cockermouth in June 1999. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparable premises in Cockermouth with a long lease were valued about £225,800. The average ground rent payable was £60 collected every twelve months. The lease ended in 2086. Considering the 60 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 exclusive of fees.