There is no doubt about it a leasehold flat or house in Cotswolds is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease sooner rather than later. Most flat owners in Cotswolds will qualify for this right; however a conveyancing solicitor should be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Cotswolds,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cotswolds valuers.
In the wake of eight months of lengthy discussions with the freeholder of her studio apartment in Cotswolds, Hannah started the lease extension process just as the lease was coming close to the crucial 80-year threshold. The transaction completed in May 2006. The freeholder’s charges were negotiated to about four hundred pounds.
Last month we were phoned by Mr C Brooks , who purchased a basement apartment in Cotswolds in February 2004. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Cotswolds with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected every twelve months. The lease finished on 22 September 2076. Taking into account 50 years left we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.
Dr Jayden Jones bought a purpose-built flat in Cotswolds in November 1996. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar homes in Cotswolds with a long lease were worth £203,200. The average amount of ground rent was £65 billed monthly. The lease ran out in 2087. Given that there were 61 years unexpired we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including costs.