Cookham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Cookham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Cookham you must investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Cookham with over 100 years outstanding on the lease are sometimes 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 buying the reversionary interest unless savings on ground rent and maintenance 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. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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 lawyer we work with provide it.
Alexander owned a studio flat in Cookham on the market with a lease of just over 72 years remaining. Alexander informally spoke with his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were phoned by Mr and Mrs. V Turner who, having acquired a garden flat in Cookham in March 1999. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Comparative homes in Cookham with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 billed per annum. The lease concluded on 20 January 2096. Given that there were 70 years left we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.
Dr Callum Green owned a purpose-built apartment in Cookham in October 1995. The dilemma was if we could approximate the price could be to prolong the lease by an additional years. Comparative premises in Cookham with a long lease were in the region of £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ran out in 2085. Having 59 years left we approximated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 plus expenses.