Unfortunately that a Cookley residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Cookley property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay half 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 The majority of flat owners in Cookley will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if 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 conveyancer throughout the formalities.
Leasehold premises in Cookley with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 service 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
The lawyers that we work with undertake Cookley 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 conveyancer we work with provide it.
Last year Jackson, came very close to the 80-year threshold with the lease on his one bedroom flat in Cookley. In buying his property twenty years ago, the lease term was of minimal concern. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Jackson was able to extend his lease at the eleventh hour in June. Jackson and the landlord who owned the flat above ultimately settled on a premium of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £950.
Mr and Mrs. R Stewart purchased a one bedroom apartment in Cookley in June 1998. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative homes in Cookley with 100 year plus lease were in the region of £264,000. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 13 October 2078. Taking into account 53 years remaining we estimated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.
Last Autumn we were called by Mr and Mrs. A Michel , who owned a ground floor apartment in Cookley in June 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable properties in Cookley with 100 year plus lease were valued around £225,400. The mid-range ground rent payable was £45 collected annually. The lease concluded on 7 September 2089. Taking into account 64 years outstanding we estimated the premium to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of professional charges.