Unfortunately that a Cockermouth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Cockermouth property market.Once your lease nears 85ish years, you should 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 below 80 years - otherwise a higher amount will be payable. The majority of flat owners in Cockermouth will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies 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 value 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better 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 conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her one bedroom apartment in Cockermouth, Louise started the lease extension process as the 80 year mark was rapidly approaching. The legal work was concluded in April 2009. The freeholder’s fees were kept to an absolute minimum.
Last month we were approach by Ms Sian Cook , who was assigned a lease of a purpose-built flat in Cockermouth in July 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in Cockermouth with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 billed monthly. The lease terminated in 2077. Considering the 51 years left we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
In 2011 we were e-mailed by Mr and Mrs. S Pérez who, having owned a purpose-built flat in Cockermouth in January 2008. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Cockermouth with an extended lease were valued around £280,000. The average amount of ground rent was £45 invoiced quarterly. The lease ran out on 6 August 2097. Taking into account 71 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.