It’s a harsh certainty that a Cookham residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Cookham property market.Once your lease gets to 85ish years, you should start considering a lease extension. If lease term slips under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Cookham will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold residencies in Cookham with more than one hundred years remaining 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cookham can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cookham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Alex, came precariously near to the 80-year mark with the lease on his studio flat in Cookham. Having purchased his flat 19 years previously, the unexpired term was of little concern. by good luck, he realised he needed to take action soon on Extending the lease. Alex was able to extend his lease just in the nick of time in May. Alex and the landlord ultimately settled on a premium of £5,500 . If he failed to meet the deadline, the price would have increased by a minimum £950.
In 2014 we were contacted by Mrs P Wright who, having bought a garden flat in Cookham in March 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Cookham with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 billed yearly. The lease expiry date was on 19 May 2091. Taking into account 65 years unexpired we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 plus legals.
In 2009 we were contacted by Mr E Vincent who, having completed a basement apartment in Cookham in November 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable homes in Cookham with an extended lease were valued about £191,400. The mid-range amount of ground rent was £55 billed annually. The lease expired on 25 October 2080. Considering the 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of professional charges.