Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Cookley. Inevitably, the term of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Cookley have the right to extend the lease for a further ninety years under statute. Do give due deliberation before putting off your Cookley lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 enhanced control over the value of your Cookley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the freeholder of her two bedroom flat in Cookley, Yasmin commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension completed in July 2014. The landlord’s charges were restricted to a tad over 600 GBP.
In 2011 we were called by Dr Elizabeth Simon who, having moved into a one bedroom flat in Cookley in November 2005. The question was if we could estimate the price would be for a ninety year lease extension. Identical premises in Cookley with an extended lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease ended on 15 August 2103. Given that there were 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Dr Isabel Wilson owned a newly refurbished flat in Cookley in May 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Cookley with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease ended in 2083. Having 57 years unexpired we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.