Chances are that where you own a flat in Cookham you actually own a long leasehold interest over your property
Leasehold residencies in Cookham with in excess of 100 years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Yorkshire 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. |
The lawyers 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 lawyer we work with provide it.
Benjamin was the the leasehold owner of a conversion flat in Cookham on the market with a lease of a few days over 72 years outstanding. Benjamin informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2012 we were e-mailed by Mrs H Nelson who, having took over the lease of a first floor apartment in Cookham in October 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Cookham with a long lease were in the region of £240,600. The average ground rent payable was £60 invoiced monthly. The lease ended on 2 May 2088. Having 62 years remaining we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including expenses.
Last month we were called by Mr D Anderson , who purchased a purpose-built flat in Cookham in January 2003. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative flats in Cookham with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 collected monthly. The lease came to a finish on 14 March 2077. Having 51 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.