Cookham leases on residential properties are gradually diminishing 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. Most owners of residential leasehold property in Cookham enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Cookham you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Cookham flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Irrespective 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 in-depth market knowledge and the close ties they enjoy with Cookham valuers.
Following unsuccessful discussions with the freeholder of her studio flat in Cookham, Louise initiated the lease extension process as the eighty year threshold was fast nearing. The legal work was finalised in April 2014. The landlord’s charges were kept to an absolute minimum.
Last month we were e-mailed by Mr Kian Ali , who acquired a ground floor flat in Cookham in October 2004. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar premises in Cookham with 100 year plus lease were valued around £200,000. The average ground rent payable was £50 billed per annum. The lease elapsed on 22 July 2103. Given that there were 77 years left we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus expenses.
Last month we were e-mailed by Dr Evan Evans , who acquired a purpose-built apartment in Cookham in June 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar homes in Cookham with a long lease were worth £260,200. The mid-range amount of ground rent was £65 billed monthly. The lease expired on 17 April 2092. Considering the 66 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including professional charges.