The closer a residential lease in Cotham gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 100 years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Cotham will meet the qualifying criteria; however a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Cotham with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
Engaging our service gives you better control over the value of your Cotham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Matthew, started to get close to the 80-year threshold with the lease on his studio flat in Cotham. In buying his property two decades ago, the lease term was of little bearing. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Matthew extended the lease just in the nick of time in September. Matthew and the freeholder in the end settled on an amount of £6,000 . If the lease had dipped lower than 80 years, the figure would have gone up by at least £850.
Dr A Cox took over the lease of a garden apartment in Cotham in March 2010. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Cotham with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 collected per annum. The lease ended on 21 February 2089. Considering the 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 exclusive of costs.
Dr Daniel Gunderson owned a purpose-built flat in Cotham in January 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar homes in Cotham with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease finished on 13 February 2100. Given that there were 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.