There is no doubt about it a leasehold flat or house in Cottenham Park is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending sooner rather than later. Most flat owners in Cottenham Park will meet the qualifying criteria; nevertheless a conveyancer can advise if 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.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Cottenham Park,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cottenham Park valuers.
In the wake of 9 months of lengthy correspondence with the freeholder of her one bedroom flat in Cottenham Park, Danielle commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The lease extension was concluded in August 2007. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. U Laurent acquired a studio apartment in Cottenham Park in July 1997. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Cottenham Park with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 billed annually. The lease finished in 2099. Having 74 years left we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Dr U Parker acquired a one bedroom apartment in Cottenham Park in July 2003. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Cottenham Park with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 collected annually. The lease ran out in 2088. Having 63 years left we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including professional charges.