Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cookley. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Cookley have the legal entitlement to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. You should give careful deliberation before putting off your Cookley lease extension. Holding off the cost now simply increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Cookley with more than 100 years outstanding 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Cookley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ryan, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Cookley. In buying his property 19 years previously, the lease term was of minimal importance. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Ryan was able to extend his lease just ahead of time in September. Ryan and the landlord who owned the flat above in the end settled on an amount of £6,000 . If the lease had dipped lower than 80 years, the price would have escalated by at least £1,150.
Last month we were contacted by Mrs F Wilson , who moved into a garden flat in Cookley in September 1998. The question was if we could approximate the premium would be for a 90 year lease extension. Similar homes in Cookley with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed annually. The lease elapsed on 12 March 2105. Considering the 79 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.
In 2009 we were e-mailed by Dr J Leroy who, having acquired a garden flat in Cookley in February 2000. The question was if we could estimate the price could be to prolong the lease by ninety years. Comparative residencies in Cookley with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed in 2085. Having 59 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 not including professional charges.