Unfortunately that a Cockermouth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Cockermouth property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be payable. The majority of flat owners in Cockermouth will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Cockermouth with more than one hundred 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Cockermouth,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cockermouth valuers.
Gabriel owned a conversion flat in Cockermouth being marketed with a lease of a few days over fifty eight years unexpired. Gabriel informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mrs Isobel Cook purchased a purpose-built apartment in Cockermouth in June 2001. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparative homes in Cockermouth with an extended lease were worth £206,200. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2081. Taking into account 56 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including expenses.
Last Summer we were e-mailed by Dr Theo Rivera , who purchased a studio apartment in Cockermouth in March 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Cockermouth with a long lease were valued around £300,000. The average amount of ground rent was £50 collected every twelve months. The lease end date was on 14 January 2101. Considering the 76 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus professional charges.