Cookham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Cookham tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cookham you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Cookham with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Cookham,the lease extension experts that we work with will always be happy 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.
Leo owned a conversion flat in Cookham on the market with a lease of fraction over 61 years unexpired. Leo informally approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Winter we were e-mailed by Dr G White , who acquired a one bedroom apartment in Cookham in April 1996. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable premises in Cookham with 100 year plus lease were valued around £208,600. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out on 17 October 2082. Considering the 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
Last year we were approach by Ms J Dupont , who acquired a newly refurbished flat in Cookham in January 2009. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative properties in Cookham with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 collected quarterly. The lease finished in 2102. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus fees.