It’s an underpublicised truth that a Copmanthorpe residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Copmanthorpe property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Copmanthorpe will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Copmanthorpe with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Copmanthorpe 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.
In the wake of eight months of protracted negotiations with the landlord of her leasehold apartment in Copmanthorpe, Rosie started the lease extension process as the 80 year deadline was rapidly approaching. The legal work completed in February 2010. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were called by Dr Kian Lee who, having purchased a garden apartment in Copmanthorpe in February 2009. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical properties in Copmanthorpe with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 collected per annum. The lease finished on 1 January 2083. Given that there were 57 years remaining we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Last Christmas we were contacted by Mr C Mason , who bought a garden apartment in Copmanthorpe in July 1997. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Copmanthorpe with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced monthly. The lease concluded on 28 September 2094. Taking into account 68 years left we approximated the premium to the freeholder to extend the lease to be between £10,500 and £12,000 not including fees.