Cottenham Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Cottenham Park tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Cottenham Park you should see if your lease has between seventy and ninety years left. There are good reasons why a Cottenham Park flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Cottenham Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cottenham Park valuers.
Isaac was the the leasehold owner of a high value flat in Cottenham Park being sold with a lease of fraction over 59 years left. Isaac on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2010 we were phoned by Dr U Roux who, having was assigned a lease of a purpose-built flat in Cottenham Park in October 2011. The question was if we could estimate the price would likely be to prolong the lease by a further 90 years. Similar homes in Cottenham Park with 100 year plus lease were valued about £230,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease expired on 10 February 2086. Given that there were 60 years left we estimated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 exclusive of professional charges.
In 2014 we were contacted by Mr and Mrs. P Campbell who, having moved into a first floor flat in Cottenham Park in February 1995. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable flats in Cottenham Park with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish in 2106. Taking into account 80 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.