When it comes to long leasehold property in Cockermouth, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Cockermouth with a lease drawing near to 81 years remaining should seriously think of extending it sooner rather than later. Once the lease term has below eighty years left, under the current Act the freeholder can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Cockermouth with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
14 months ago Elijah, started to get close to the 80-year mark with the lease on his purpose- built flat in Cockermouth. Having purchased his property twenty years previously, the length of the lease was of no relevance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Elijah arranged for a lease extension just in the nick of time last May. Elijah and the landlord ultimately settled on an amount of £6,000 . If the lease had gone to less than 80 years, the amount would have increased by a minimum £1,100.
In 2012 we were e-mailed by Dr Oliver Murphy who, having moved into a first floor flat in Cockermouth in February 2010. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative homes in Cockermouth with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected monthly. The lease finished on 27 August 2096. Considering the 71 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
In 2009 we were e-mailed by Mr N Clark who, having purchased a newly refurbished apartment in Cockermouth in September 2003. The question was if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Cockermouth with an extended lease were worth £230,800. The average ground rent payable was £60 invoiced monthly. The lease expired in 2085. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 plus professional charges.