Cottenham Park leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Cottenham Park will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property 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 any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Cottenham Park lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Thomas was the the leasehold proprietor of a high value apartment in Cottenham Park being marketed with a lease of a few days over 59 years outstanding. Thomas informally contacted 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 on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were called by Dr J Bernard who, having was assigned a lease of a one bedroom flat in Cottenham Park in January 1995. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Cottenham Park with an extended lease were in the region of £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease finished on 8 August 2079. Considering the 53 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Dr L Lefèvre owned a studio flat in Cottenham Park in November 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable premises in Cottenham Park with a long lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease end date was in 2100. Considering the 74 years left we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.