Cookham residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Cookham,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 experience and the close ties they enjoy with Cookham valuers.
Theo owned a studio apartment in Cookham on the market with a lease of a little over sixty years remaining. Theo informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Theo to invoke his statutory right. Theo obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were approached by Mr and Mrs. J Gray who, having was assigned a lease of a ground floor apartment in Cookham in November 1998. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable flats in Cookham with a long lease were worth £191,400. The average amount of ground rent was £55 collected per annum. The lease concluded in 2080. Given that there were 54 years left we estimated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including expenses.
Last Autumn we were called by Mr P Edwards , who took over the lease of a purpose-built apartment in Cookham in April 2010. The dilemma was if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable residencies in Cookham with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended on 25 March 2100. Having 74 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.