It’s an underpublicised certainty that a Cookham residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Cookham property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Cookham will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Cookham with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Yorkshire Building Society |
Retaining our service gives you enhanced control over the value of your Cookham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth owned a 2 bedroom apartment in Cookham being sold with a lease of a few days over 72 years unexpired. Seth informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Mrs Rhiannon Dupont bought a garden flat in Cookham in August 2005. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Similar residencies in Cookham with a long lease were valued about £223,400. The mid-range amount of ground rent was £60 invoiced annually. The lease terminated on 17 November 2085. Having 59 years outstanding we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus costs.
Mr and Mrs. U David acquired a one bedroom apartment in Cookham in October 2004. We are asked if we could approximate the price would be for a ninety year lease extension. Similar properties in Cookham with an extended lease were in the region of £205,000. The average amount of ground rent was £50 billed quarterly. The lease ran out in 2105. Considering the 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.