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 one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Most flat owners in Cotswolds will meet the qualifying criteria; that being said a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Cotswolds with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Cotswolds leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Luca, came dangerously close to the 80-year threshold with the lease on his basement flat in Cotswolds. In buying his home two decades ago, the lease term was of minimal significance. Luckily, he noticed he would soon be paying an escalated premium for Extending the lease. Luca arranged for a lease extension at the eleventh hour last September. Luca and the landlord ultimately settled on the final figure of £6,000 . If he had missed the deadline, the amount would have increased by at least £875.
Mr and Mrs. T Adams bought a purpose-built flat in Cotswolds in July 2012. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar homes in Cotswolds with an extended lease were worth £183,600. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2083. Given that there were 57 years outstanding we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.
Dr P Green bought a newly refurbished flat in Cotswolds in October 2000. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Cotswolds with a long lease were valued about £245,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed on 8 September 2094. Having 68 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.