Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cotham. Clearly, the term of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Cotham have the legal entitlement to extend the lease for a further 90 years in accordance with statute. You should give due consideration before delaying your Cotham lease extension. Putting off that expense now only increases the price you will eventually incur for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cotham can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in this area.
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 lengthy discussions with the landlord of her garden apartment in Cotham, Molly initiated the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in February 2013. The freeholder’s fees were kept to an absolute minimum.
Mrs F Nelson was assigned a lease of a newly refurbished apartment in Cotham in July 2008. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Comparative premises in Cotham with an extended lease were worth £250,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2095. Having 69 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
In 2009 we were contacted by Mr Y Parker who, having owned a one bedroom apartment in Cotham in January 2006. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative properties in Cotham with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease expired in 2105. Taking into account 79 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.