As the the remaining lease term of a Cookham domestic lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner as opposed to later. Most flat owners in Cookham will meet the qualifying criteria; that being said a lawyer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Cookham with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your Cookham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her one bedroom apartment in Cookham, Georgia commenced the lease extension process as the eighty year threshold was quickly approaching. The transaction was finalised in April 2007. The landlord’s costs were restricted to about 500 pounds.
Last month we were approach by Mr O Michel , who owned a one bedroom flat in Cookham in February 1999. The question was if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Cookham with an extended lease were valued around £285,000. The average ground rent payable was £45 billed monthly. The lease expired on 4 January 2097. Having 72 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including costs.
Last Summer we were phoned by Mr and Mrs. G Torres , who purchased a one bedroom flat in Cookham in March 2006. The question was if we could approximate the price would be to extend the lease by an additional years. Comparable residencies in Cookham with 100 year plus lease were worth £233,200. The mid-range ground rent payable was £60 collected annually. The lease concluded on 15 August 2086. Taking into account 61 years remaining we approximated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.