Cottenham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Cottenham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Cottenham you should see if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cottenham can be a difficult process. We recommend you obtain professional help from a conveyancer 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 in-depth market knowledge dealing with Cottenham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Archie, came very near to the eighty-year threshold with the lease on his first floor flat in Cottenham. Having purchased his property two decades ago, the lease term was of no concern. Fortunately, he noticed he needed to take steps soon on Extending the lease. Archie was able to extend his lease just under the wire in June. Archie and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the sum would have gone up by at least £1,075.
Last Winter we were called by Ms M Lefèvre , who completed a studio flat in Cottenham in July 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Cottenham with a long lease were valued about £300,000. The mid-range ground rent payable was £50 billed every twelve months. The lease concluded on 3 April 2100. Taking into account 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including legals.
Last month we were phoned by Mrs Georgia Young , who moved into a ground floor apartment in Cottenham in May 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative residencies in Cottenham with 100 year plus lease were valued about £257,800. The average ground rent payable was £65 billed quarterly. The lease expired in 2089. Considering the 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 plus professional charges.