The market value of a leasehold property in Cookley is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised prior to the 80 year threshold. Statute entitles Cookley qualifying lessees to an additional term of 90 years in addition to the existing term, at a nominal rent (zero ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Cookley with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Cookley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cookley valuers.
Trailing lengthy negotiations with the landlord of her first floor apartment in Cookley, Mia commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was finalised in April 2011. The landlord’s charges were restricted to slightly above 500 pounds.
Last Christmas we were phoned by Dr Freya Lewis , who completed a one bedroom flat in Cookley in February 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Cookley with an extended lease were in the region of £173,800. The average amount of ground rent was £60 collected every twelve months. The lease terminated on 27 May 2081. Taking into account 55 years outstanding we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
Last Spring we were e-mailed by Mr and Mrs. O Ricardo , who owned a first floor flat in Cookley in November 2004. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Cookley with a long lease were valued around £235,200. The average amount of ground rent was £45 collected per annum. The lease expired on 20 June 2092. Considering the 66 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.