As the length of the unexpired term of a Cockfosters residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 100 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. The majority of flat owners in Cockfosters will meet the qualifying criteria; that being said a lawyer should be able to advise 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 conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Cockfosters lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Sam was the the leasehold owner of a high value flat in Cockfosters on the market with a lease of just over sixty years outstanding. Sam on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Sam to exercise his statutory right. Sam procured expert advice and secured satisfactory resolution informally and sell the property.
Last year we were e-mailed by Mrs C Dupont , who bought a ground floor apartment in Cockfosters in June 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Similar homes in Cockfosters with 100 year plus lease were worth £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease terminated on 23 November 2084. Having 58 years unexpired we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of professional charges.
An example of a Freehold Enfranchisement case for a Cockfosters flat is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case was in relation to 2 flats. The unexpired term as at the valuation date was 70.31 years.