With a residential leasehold premises in Cookley, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Residents in Cookley with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the relevant statute the freeholder can calculate and charge a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Cookley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cookley valuers.
Subsequent to unsuccessful discussions with the landlord of her garden apartment in Cookley, Mia started the lease extension process as the 80 year threshold was swiftly coming. The transaction was concluded in June 2006. The freeholder’s costs were restricted to a tad over 600 pounds.
Mr and Mrs. A Nguyen purchased a one bedroom apartment in Cookley in April 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable premises in Cookley with an extended lease were in the region of £242,600. The average ground rent payable was £45 billed per annum. The lease lapsed on 11 May 2093. Taking into account 67 years remaining we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus professional charges.
Ms I Smith moved into a first floor flat in Cookley in July 2002. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Similar flats in Cookley with an extended lease were valued around £280,000. The average ground rent payable was £55 invoiced every twelve months. The lease ended in 2104. Given that there were 78 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.