Copthorne leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Copthorne will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Copthorne leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the landlord of her two bedroom apartment in Copthorne, Katherine commenced the lease extension process just as the lease was nearing the critical 80-year mark. The lease extension was concluded in October 2007. The landlord’s charges were restricted to less than 550 pounds.
In 2011 we were contacted by Dr Harvey Davies who, having bought a studio apartment in Copthorne in March 2002. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Copthorne with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed yearly. The lease expired on 18 May 2101. Having 75 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mrs Rachael Vincent completed a basement apartment in Copthorne in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Copthorne with a long lease were in the region of £168,800. The average ground rent payable was £60 collected annually. The lease lapsed in 2081. Considering the 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.