Cookham leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease drops lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Cookham will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Cookham with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
The conveyancers that we work with undertake Cookham 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.
Last October Oliver, started to get near to the eighty-year mark with the lease on his two bedroom flat in Cookham. Having purchased his home twenty years ago, the lease term was of minimal bearing. Luckily, he recognised he would soon be paying an escalated premium for a lease extension. Oliver extended the lease at the eleventh hour in July. Oliver and the freeholder eventually agreed on an amount of £6,000 . If the lease had slipped below eighty years, the amount would have increased by a minimum £1,050.
In 2012 we were called by Mr A Lewis who, having completed a one bedroom apartment in Cookham in March 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Identical residencies in Cookham with a long lease were worth £285,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease finished on 24 April 2097. Having 71 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus fees.
In 2009 we were approached by Mr and Mrs. W Bailey who, having completed a first floor apartment in Cookham in July 2002. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable homes in Cookham with an extended lease were worth £225,800. The average amount of ground rent was £60 invoiced per annum. The lease expired on 12 May 2086. Considering the 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including legals.