The re-sale value of a leasehold property in Cotham is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years remaining so that a lease extension can be finalised in advance of the eighty year mark. Current legislation entitles Cotham qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Cotham can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Cotham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas was the the leasehold owner of a conversion apartment in Cotham on the market with a lease of just over fifty eight years outstanding. Thomas on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. S Green was assigned a lease of a one bedroom apartment in Cotham in May 2012. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Identical premises in Cotham with an extended lease were worth £255,000. The average amount of ground rent was £50 collected yearly. The lease ran out in 2096. Taking into account 71 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2014 we were approached by Mr Dexter Nguyen who, having completed a ground floor apartment in Cotham in September 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Identical flats in Cotham with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease came to a finish in 2076. Having 51 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including fees.