It’s a harsh truth that a Cottenham Park residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Cottenham Park property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining dips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Cottenham Park will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Virgin |
Engaging our service will provide you better control over the value of your Cottenham Park leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Harry, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Cottenham Park. In buying his flat two decades ago, the lease term was of no relevance. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Harry was able to extend his lease just under the wire in January. Harry and the landlord eventually settled on sum of £5,000 . If the lease had dipped to less than 80 years, the sum would have increased by a minimum £1,000.
Last Winter we were e-mailed by Mr Caleb Wilson , who moved into a garden flat in Cottenham Park in March 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Cottenham Park with an extended lease were valued around £275,000. The average ground rent payable was £65 invoiced quarterly. The lease came to a finish on 2 September 2094. Having 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last Summer we were phoned by Mr and Mrs. J Bailey , who moved into a garden apartment in Cottenham Park in August 2005. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable flats in Cottenham Park with 100 year plus lease were valued around £213,600. The mid-range amount of ground rent was £60 billed annually. The lease elapsed on 1 June 2083. Considering the 57 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.