It’s a harsh truth that a Cotgrave residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Cotgrave property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If the number of years remaining falls under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Cotgrave will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Cotgrave,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cotgrave valuers.
After protracted negotiations with the freeholder of her purpose-built apartment in Cotgrave, Danielle initiated the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in October 2008. The freeholder’s charges were negotiated to less than six hundred GBP.
In 2012 we were called by Mr Zachary Ali who, having acquired a recently refurbished apartment in Cotgrave in July 2002. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar properties in Cotgrave with an extended lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including costs.
Mr and Mrs. A Khan bought a garden apartment in Cotgrave in February 2000. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Cotgrave with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease ended in 2088. Having 62 years outstanding we estimated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 plus professional charges.