Cotgrave leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Cotgrave will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cotgrave can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cotgrave lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Callum, started to get near to the 80-year threshold with the lease on his leasehold flat in Cotgrave. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Callum was able to extend his lease just under the wire last May. Callum and the freeholder via the management company in the end agreed on sum of £6,000 . If the lease had slipped below 80 years, the premium would have increased by a minimum £975.
In 2012 we were called by Dr T Ali who, having purchased a studio apartment in Cotgrave in November 2003. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar properties in Cotgrave with a long lease were valued around £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease came to a finish on 8 June 2103. Considering the 77 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
In 2012 we were approached by Mr and Mrs. V Rose who, having purchased a purpose-built flat in Cotgrave in September 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable properties in Cotgrave with a long lease were worth £181,200. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2082. Given that there were 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of fees.