It’s an underpublicised certainty that a Cookham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Cookham property prices.Once your lease nears 85ish years, you need to start considering 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 slips under eighty years - otherwise a higher premium will be payable. Most leasehold owners in Cookham will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Cookham with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Skipton Building Society | |
| The Mortgage Works |
Lease extensions in Cookham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer 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 in-depth market knowledge dealing with Cookham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
William was the the leasehold proprietor of a studio apartment in Cookham being marketed with a lease of just over fifty eight years remaining. William on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were William to invoke his statutory right. William procured expert advice and secured an acceptable resolution informally and readily saleable.
Last Autumn we were phoned by Dr F Edwards , who purchased a recently refurbished flat in Cookham in September 2008. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable residencies in Cookham with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease terminated on 14 September 2100. Having 74 years remaining we approximated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2009 we were e-mailed by Mr and Mrs. E Sharif who, having owned a newly refurbished apartment in Cookham in February 2001. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar premises in Cookham with an extended lease were worth £243,000. The mid-range ground rent payable was £65 collected monthly. The lease terminated in 2089. Taking into account 63 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of expenses.