As the the remaining lease term of a Cotswolds domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner rather than later. The majority of flat owners in Cotswolds will qualify for this right; that being said a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Halifax | |
| National Westminster Bank | |
| Nationwide Building Society |
The conveyancing solicitors that we work with handle Cotswolds lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
18 months ago Seth, came seriously near to the eighty-year mark with the lease on his leasehold apartment in Cotswolds. In buying his flat two decades ago, the unexpired term was of minimal significance. Fortunately, he realised he would imminently be paying an inflated amount for Extending the lease. Seth arranged for a lease extension just ahead of time in July. Seth and the landlord ultimately agreed on the final figure of £5,500 . If he not met the deadline, the amount would have become more costly by a minimum £850.
Last Christmas we were approach by Dr Tommy Bell , who bought a garden apartment in Cotswolds in July 1998. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Similar homes in Cotswolds with a long lease were worth £264,000. The average amount of ground rent was £60 billed annually. The lease elapsed on 13 September 2079. Considering the 53 years unexpired we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 not including costs.
In 2009 we were e-mailed by Dr O White who, having owned a one bedroom apartment in Cotswolds in May 2012. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical premises in Cotswolds with a long lease were valued around £220,400. The average amount of ground rent was £45 billed yearly. The lease expired in 2090. Taking into account 64 years remaining we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.