As the the remaining lease term of a Cotham residential lease diminished so does its value and therefore the value of your property. If the residual term has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Cotham will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 Cotham,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 Cotham valuers.
Last year David, came very close to the 80-year threshold with the lease on his ground floor flat in Cotham. In buying his property two decades ago, the length of the lease was of little interest. by good luck, it dawned on him that he needed to take action soon on a lease extension. David was able to extend his lease just under the wire in June. David and the freeholder eventually agreed on a premium of £5,000 . If the lease had dropped lower than 80 years, the price would have increased by at least £1,050.
Last Spring we were e-mailed by Dr Phoebe Thompson , who moved into a purpose-built apartment in Cotham in October 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar properties in Cotham with an extended lease were in the region of £193,400. The average amount of ground rent was £65 billed per annum. The lease lapsed in 2083. Considering the 59 years as a residual term we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including expenses.
Mr and Mrs. U Sánchez completed a one bedroom apartment in Cotham in March 2006. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Cotham with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease ended on 11 August 2094. Considering the 70 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.