When it comes to domestic leasehold premises in Cookham, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Anyone in Cookham with a lease approaching 81 years left should seriously consider extending it sooner rather than later. When a lease has less than eighty years remaining, under the relevant legislation the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Cookham with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
Regardless of whether you are a tenant or a freeholder in Cookham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cookham valuers.
Last Summer Jacob, started to get close to the 80-year threshold with the lease on his garden flat in Cookham. Having purchased his home two decades ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Jacob was able to extend his lease at the eleventh hour last April. Jacob and the landlord who owned the flat above ultimately settled on sum of £6,000 . If he had missed the deadline, the figure would have become more costly by at least £925.
In 2009 we were called by Dr Chantelle Gray who, having bought a studio flat in Cookham in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by an additional years. Similar homes in Cookham with an extended lease were in the region of £260,200. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish on 21 November 2092. Given that there were 66 years unexpired we approximated the premium to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of costs.
In 2012 we were contacted by Mr and Mrs. K Pérez who, having was assigned a lease of a newly refurbished apartment in Cookham in September 2008. The dilemma was if we could approximate the price could be to prolong the lease by ninety years. Similar premises in Cookham with an extended lease were in the region of £198,800. The average ground rent payable was £55 invoiced quarterly. The lease expired in 2081. Given that there were 55 years left we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of costs.