Cotgrave leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Flat owners in Cotgrave will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Cotgrave leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jamie owned a conversion apartment in Cotgrave being marketed with a lease of fraction over 59 years remaining. Jamie on an informal basis contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and secured an acceptable resolution informally and readily saleable.
Last Autumn we were e-mailed by Dr Nathaniel Ali , who took over the lease of a recently refurbished apartment in Cotgrave in March 2012. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar flats in Cotgrave with an extended lease were worth £270,000. The average amount of ground rent was £55 billed yearly. The lease end date was on 8 January 2101. Given that there were 75 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including costs.
Mr Milo Baker owned a studio flat in Cotgrave in August 1996. The question was if we could estimate the premium would be to extend the lease by an additional years. Identical homes in Cotgrave with an extended lease were in the region of £168,800. The average amount of ground rent was £60 collected yearly. The lease lapsed in 2081. Given that there were 55 years left we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.