When it comes to residential leasehold premises in Cottenham, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Cottenham with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the current statute the landlord is entitled to calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Cottenham can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Cottenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her basement apartment in Cottenham, Mollie commenced the lease extension process as the eighty year deadline was fast advancing. The lease extension was concluded in October 2012. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. R Alexander acquired a basement flat in Cottenham in May 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative properties in Cottenham with a long lease were in the region of £206,200. The average amount of ground rent was £60 billed quarterly. The lease expired in 2081. Taking into account 56 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of professional charges.
In 2014 we were contacted by Mr M Vincent who, having owned a studio flat in Cottenham in April 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable flats in Cottenham with 100 year plus lease were worth £200,000. The average ground rent payable was £50 billed every twelve months. The lease terminated in 2102. Given that there were 77 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of expenses.