The re-sale value of a leasehold property in Cottenham Park depends on how many years the lease has left to run. If it is near to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that all matters can be finalised prior to the 80 year threshold. Statute enables Cottenham Park qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Cottenham Park with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Cottenham Park can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Cottenham Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Adam owned a high value apartment in Cottenham Park being marketed with a lease of a little over 59 years unexpired. Adam informally contacted his landlord a well known Bristol-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last month we were called by Ms U Petit , who took over the lease of a recently refurbished apartment in Cottenham Park in October 2008. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable properties in Cottenham Park with 100 year plus lease were in the region of £240,600. The average amount of ground rent was £65 invoiced yearly. The lease finished on 20 June 2087. Given that there were 62 years outstanding we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 exclusive of expenses.
In 2013 we were e-mailed by Mrs Sophie Wilson who, having acquired a one bedroom apartment in Cottenham Park in May 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative flats in Cottenham Park with an extended lease were valued about £179,200. The mid-range amount of ground rent was £55 billed annually. The lease ended on 17 March 2076. Having 51 years remaining we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.