Main reasons to start your Cotham lease extension

Main reasons to commence your Cotham lease extension today:

A Cotham lease depreciates with the years remaining on the lease.

The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cotham may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Cotham lease extension. Shelving the costs now simply increases the premium you will eventually have to pay to extend the lease.

Cotham property with a lease extension is almost the same value as a freehold

Leasehold premises in Cotham with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may not grant a mortgage on a short lease

Whether or not the lease is be regarded as a short lease depends on the specific mortgage company, yet lending institutions start to become concerned at around 75 years. This may be problematic as and when you come to sell or remortgage your flat as it will be effectively unmortgageable. You may have no immediate plan to sell but when you do your purchaser will need to wait a couple of years before they can start the legal procedures for a lease extension.

What makes us experts in Cotham lease extensions?

Using our service gives you increased control over the value of your Cotham leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Cotham Lease Extension Example Cases:

Finley, Cotham, Bristol

Last October Finley, started to get near to the 80-year mark with the lease on his basement apartment in Cotham. Having purchased his property 18 years previously, the unexpired term was of minimal concern. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Finley was able to extend his lease just under the wire in April. Finley and the freeholder via the management company in the end agreed on sum of £6,000 . If the lease had gone to less than eighty years, the sum would have increased by a minimum £1,125.

Cotham case:

Last Summer we were contacted by Mr T Morgan , who acquired a one bedroom apartment in Cotham in February 2000. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by an additional years. Comparable properties in Cotham with 100 year plus lease were worth £254,200. The average ground rent payable was £60 invoiced monthly. The lease finished on 8 August 2077. Taking into account 51 years remaining we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 exclusive of fees.

Cotham case:

Mr and Mrs. T Mason moved into a garden flat in Cotham in June 1996. The question was if we could estimate the premium could be for a ninety year lease extension. Comparative flats in Cotham with 100 year plus lease were worth £215,600. The average ground rent payable was £45 collected monthly. The lease termination date was on 11 October 2088. Taking into account 62 years remaining we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including professional charges.