Cotgrave leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be payable. Flat owners in Cotgrave will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and steps to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Cotgrave with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you enhanced control over the value of your Cotgrave leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the landlord of her leasehold apartment in Cotgrave, Abigail initiated the lease extension process as the 80 year deadline was quickly advancing. The legal work was finalised in January 2008. The landlord’s costs were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. R Wood , who completed a one bedroom flat in Cotgrave in July 1996. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Cotgrave with an extended lease were valued around £218,000. The average ground rent payable was £45 billed every twelve months. The lease concluded on 12 September 2089. Given that there were 63 years remaining we approximated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of professional charges.
Last Autumn we were phoned by Ms Lucy Girard , who moved into a purpose-built apartment in Cotgrave in November 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Cotgrave with a long lease were in the region of £265,000. The average amount of ground rent was £50 billed annually. The lease finished in 2100. Considering the 74 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.