Unfortunately that a Cockfosters residential lease is a wasting asset. The lease value drops 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 Cockfosters property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Cockfosters will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold residencies in Cockfosters with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Cockfosters can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Cockfosters lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Alexander, came precariously near to the eighty-year mark with the lease on his first floor apartment in Cockfosters. Having bought his property 18 years ago, the lease term was of minimal bearing. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Alexander arranged for a lease extension just under the wire last March. Alexander and the landlord subsequently agreed on the final figure of £5,000 . If the lease had dropped lower than eighty years, the price would have increased by a minimum £900.
Last month we were approach by Mr S Ali , who completed a studio apartment in Cockfosters in April 2001. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Identical properties in Cockfosters with 100 year plus lease were valued about £275,000. The average amount of ground rent was £65 billed quarterly. The lease finished in 2093. Given that there were 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
An example of a Freehold Enfranchisement case for a Cockfosters premises is 23 Beaconsfield Road in July 2013. The Tribunals decided that the amount payable was £31,203 for the freehold. This case affected 2 flats. The unexpired term was 70.31 years.