There is no doubt about it a leasehold flat or house in Cookham is a wasting asset as a result of the diminishing lease term. If the lease has, beyond one hundred years to run then this decrease may be of little impact however there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Cookham will meet the qualifying criteria; nevertheless a lawyer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Cookham with over 100 years left 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant 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 greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Cookham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a 2 bedroom flat in Cookham being sold with a lease of just over sixty years outstanding. Omar on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Omar to invoke his statutory right. Omar obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
Last year we were contacted by Ms N Lewis , who took over the lease of a purpose-built apartment in Cookham in March 2005. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Similar properties in Cookham with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 collected quarterly. The lease lapsed on 20 September 2103. Having 79 years outstanding we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.
Mr and Mrs. L Díaz purchased a purpose-built flat in Cookham in February 2007. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar flats in Cookham with a long lease were valued about £275,000. The mid-range ground rent payable was £65 collected annually. The lease finished in 2092. Having 68 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.