Cobham leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Cobham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Cobham with over 100 years outstanding 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 home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
The conveyancers that we work with handle Cobham lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aiden owned a studio apartment in Cobham being sold with a lease of a little over 59 years remaining. Aiden on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Aiden to exercise his statutory right. Aiden obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were e-mailed by Ms V Gómez , who purchased a basement apartment in Cobham in November 2006. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative premises in Cobham with a long lease were worth £225,400. The average amount of ground rent was £45 billed every twelve months. The lease finished on 24 January 2090. Having 64 years as a residual term we approximated the premium to the landlord to extend the lease to be between £15,200 and £17,600 plus legals.
Last Spring we were e-mailed by Ms C Bertrand , who bought a recently refurbished apartment in Cobham in November 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Cobham with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease end date was in 2101. Given that there were 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.