The re-sale value of a leasehold property in Cookham is impacted by how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension before buying. It is preferable to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the 80 year mark. Statute entitles Cookham qualifying lessees to acquire a lease extension of 90 years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Cookham with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cookham can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience 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.
Ali owned a high value apartment in Cookham being marketed with a lease of a little over fifty eight years left. Ali on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Ali to exercise his statutory right. Ali procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. Y Hall purchased a recently refurbished flat in Cookham in November 1999. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative homes in Cookham with a long lease were worth £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease elapsed in 2096. Taking into account 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.
Dr Alexandra Vincent completed a garden flat in Cookham in July 1999. We are asked if we could approximate the price could be for a 90 year lease extension. Comparative premises in Cookham with a long lease were worth £225,800. The average amount of ground rent was £60 collected quarterly. The lease expired on 12 May 2085. Having 60 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 not including legals.