As the the remaining lease term of a Cobham domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years remaining then this decrease may be fractional that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. Many flat owners in Cobham will meet the qualifying criteria; nevertheless a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cobham can be a difficult process. We recommend you get guidance from a conveyancer and valuer with experience in this area.
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 Cobham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her one bedroom flat in Cobham, Sophie initiated the lease extension process as the eighty year mark was rapidly advancing. The transaction was concluded in May 2007. The landlord’s fees were kept to an absolute minimum.
In 2014 we were called by Mrs Amber Gómez who, having purchased a purpose-built flat in Cobham in July 1995. The question was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Cobham with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 invoiced annually. The lease expired on 2 February 2092. Considering the 66 years as a residual term we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Mr and Mrs. I Howard moved into a basement apartment in Cobham in October 2009. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable premises in Cobham with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed monthly. The lease came to a finish in 2103. Given that there were 77 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of fees.