With a long leasehold premises in Cookham, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years left. Residents in Cookham with a lease nearing 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years remaining, under the relevant statute the landlord is entitled to calculate and levy a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Cookham leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Jamie, came seriously near to the eighty-year mark with the lease on his studio apartment in Cookham. In buying his home two decades ago, the unexpired term was of little relevance. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Jamie extended the lease just under the wire in June. Jamie and the landlord in the end agreed on a premium of £6,000 . If the lease had slid to less than 80 years, the sum would have become more exhorbitant by at least £1,075.
Last July we were called by Mrs Mollie Leroy , who acquired a first floor flat in Cookham in March 2012. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Cookham with 100 year plus lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished on 13 October 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
In 2014 we were contacted by Ms Abbie Bernard who, having acquired a garden apartment in Cookham in October 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by a further 90 years. Comparative premises in Cookham with a long lease were worth £275,000. The mid-range ground rent payable was £65 billed per annum. The lease elapsed in 2094. Having 68 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.