The only way is down when it comes to Cotham lease terms. Cotham flats that have a remaining term shorter than 80 years will drop in market price even faster, and the cost of extending your lease will increase.
Leasehold residencies in Cotham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Cotham leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Michael, started to get close to the eighty-year mark with the lease on his two bedroom flat in Cotham. Having bought his flat two decades ago, the length of the lease was of little concern. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Michael arranged for a lease extension at the eleventh hour last July. Michael and the freeholder via the managing agents in the end settled on a premium of £5,500 . If the lease had dropped below 80 years, the amount would have become more exhorbitant by a minimum £925.
In 2014 we were e-mailed by Mr F Bell who, having was assigned a lease of a one bedroom apartment in Cotham in May 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Identical premises in Cotham with an extended lease were valued around £168,800. The mid-range amount of ground rent was £60 collected annually. The lease concluded on 28 November 2080. Given that there were 55 years remaining we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including costs.
In 2012 we were e-mailed by Mrs Hollie Mason who, having moved into a ground floor apartment in Cotham in April 1998. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparable premises in Cotham with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected yearly. The lease termination date was in 2091. Taking into account 66 years remaining we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.