The market value of a leasehold property in Cockermouth depends on how long the lease has remaining. If it is near to or less than eighty years you should expect problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised well before the 80 year threshold. Current legislation entitles Cockermouth qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| 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. |
Using our service gives you better control over the value of your Cockermouth leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold proprietor of a conversion flat in Cockermouth on the market with a lease of a few days over fifty eight years remaining. John informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
Mr William Moore bought a purpose-built apartment in Cockermouth in January 1996. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Cockermouth with an extended lease were in the region of £213,600. The average ground rent payable was £60 billed yearly. The lease terminated in 2082. Given that there were 57 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Mr and Mrs. B Allen completed a newly refurbished flat in Cockermouth in September 1995. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Identical properties in Cockermouth with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed monthly. The lease end date was in 2103. Considering the 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of legals.