Unfortunately that a Cotham residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Cotham property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Cotham will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Cotham can be a difficult process. We recommend you procure guidance from a conveyancer 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 in-depth market knowledge procuring 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 unsuccessful correspondence with the landlord of her studio flat in Cotham, Mia commenced the lease extension process just as the lease was approaching the crucial eighty-year deadline. The legal work completed in November 2008. The freeholder’s charges were negotiated to less than 700 GBP.
Last month we were called by Ms G Davis , who acquired a one bedroom apartment in Cotham in April 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar premises in Cotham with an extended lease were in the region of £280,000. The average amount of ground rent was £55 invoiced yearly. The lease ran out on 21 October 2104. Having 78 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2011 we were contacted by Mr Matthew Roberts who, having moved into a one bedroom apartment in Cotham in September 2009. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Similar homes in Cotham with an extended lease were valued around £191,000. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 27 April 2084. Taking into account 58 years unexpired we estimated the premium to the landlord to extend the lease to be within £23,800 and £27,400 not including legals.