With a residential leasehold premises in Cobham, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are less than eighty years left. Anyone in Cobham with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the current Act the freeholder can calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cobham can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 in-depth market knowledge dealing with Cobham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a high value flat in Cobham being sold with a lease of fraction over 59 years outstanding. Jake on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jake to exercise his statutory right. Jake obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2014 we were called by Mrs E Bonnet who, having acquired a garden flat in Cobham in February 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar flats in Cobham with a long lease were in the region of £290,000. The average ground rent payable was £60 invoiced per annum. The lease termination date was on 27 May 2105. Taking into account 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of fees.
In 2011 we were approached by Mr and Mrs. C Lambert who, having bought a ground floor flat in Cobham in October 2002. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable properties in Cobham with a long lease were worth £200,800. The mid-range ground rent payable was £65 invoiced per annum. The lease finished in 2085. Taking into account 60 years left we estimated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus costs.