Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Cockermouth. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Cockermouth have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. You should give careful attention before delaying your Cockermouth lease extension. Holding off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 landlord in Cockermouth,the lease extension lawyers that we work with will always be prepared 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.
Noah owned a conversion flat in Cockermouth being marketed with a lease of a few days over 72 years unexpired. Noah informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and secured satisfactory deal informally and sell the flat.
In 2013 we were approached by Ms U Morris who, having purchased a studio flat in Cockermouth in March 1998. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Cockermouth with a long lease were in the region of £257,800. The mid-range amount of ground rent was £65 invoiced monthly. The lease concluded on 11 April 2090. Taking into account 65 years remaining we estimated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.
In 2013 we were e-mailed by Mr V Morel who, having moved into a ground floor flat in Cockermouth in November 2005. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Cockermouth with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected yearly. The lease finished on 7 July 2080. Given that there were 55 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 not including costs.