It’s a harsh truth that a Copmanthorpe residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Copmanthorpe property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be due. Most flat owners in Copmanthorpe will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Copmanthorpe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Copmanthorpe valuers.
In 2014 Gabriel, came seriously close to the eighty-year mark with the lease on his garden apartment in Copmanthorpe. Having bought his flat two decades ago, the unexpired term was of minimal importance. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Gabriel extended the lease at the eleventh hour last January. Gabriel and the landlord eventually agreed on an amount of £6,000 . If he not met the deadline, the amount would have become more costly by a minimum £950.
Mr and Mrs. U Bennett owned a first floor flat in Copmanthorpe in August 2009. We are asked if we could estimate the premium would be to extend the lease by 90 years. Comparable homes in Copmanthorpe with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 collected per annum. The lease terminated in 2101. Considering the 75 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
In 2012 we were contacted by Mr and Mrs. P Richardson who, having purchased a studio apartment in Copmanthorpe in February 2007. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable premises in Copmanthorpe with a long lease were worth £168,800. The average amount of ground rent was £60 collected quarterly. The lease concluded in 2081. Considering the 55 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.