Cookham residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Cookham with over 100 years left 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Halifax | |
| Nationwide Building Society | |
| Skipton Building Society |
Regardless of whether you are a tenant or a landlord in Cookham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cookham valuers.
William was the the leasehold owner of a conversion flat in Cookham on the market with a lease of just over 72 years unexpired. William informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and secured satisfactory deal informally and sell the property.
Mr and Mrs. E Baker bought a one bedroom flat in Cookham in February 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Cookham with a long lease were valued about £243,000. The average ground rent payable was £65 invoiced yearly. The lease terminated in 2089. Taking into account 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.
In 2014 we were called by Mr K Clarke who, having acquired a ground floor flat in Cookham in February 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Cookham with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease ran out in 2078. Given that there were 52 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.