Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Cotham. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Cotham have the right to extend the lease for a further 90 years under legislation. Please give due attention before delaying your Cotham lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold premises in Cotham with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Cotham can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Cotham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the freeholder of her two bedroom apartment in Cotham, Sian initiated the lease extension process just as the lease was coming close to the crucial 80-year threshold. The legal work completed in May 2009. The freeholder’s costs were kept to an absolute minimum.
Ms Bethany Ricardo purchased a recently refurbished flat in Cotham in October 1999. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical residencies in Cotham with 100 year plus lease were worth £181,200. The mid-range amount of ground rent was £65 invoiced yearly. The lease ended on 17 June 2082. Given that there were 56 years unexpired we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 plus legals.
Mr Harry Sharif completed a studio flat in Cotham in September 2008. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Cotham with a long lease were in the region of £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease ended on 20 August 2093. Given that there were 67 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 exclusive of costs.