The market value of a leasehold property in Cottenham is impacted by how many years the lease has left to run. If it is near to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed well before the 80 year cut off point. Current legislation enables Cottenham qualifying lessees to an additional term of 90 years on top of the unexpired term, at a nominal rent (no ground rent). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Cottenham with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Santander | |
| TSB | |
| Yorkshire Building Society |
The lawyers that we work with undertake Cottenham 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 lawyer we work with provide it.
Two years ago William, came perilously close to the eighty-year mark with the lease on his first floor apartment in Cottenham. In buying his flat two decades ago, the length of the lease was of no interest. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. William arranged for a lease extension just in the nick of time last September. William and the freeholder ultimately agreed on sum of £5,500 . If he had missed the deadline, the premium would have gone up by at least £850.
Dr J Vincent purchased a purpose-built flat in Cottenham in October 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Cottenham with an extended lease were valued about £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2106. Given that there were 80 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
In 2013 we were approached by Dr T Lefèvre who, having completed a basement flat in Cottenham in January 1995. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar premises in Cottenham with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease concluded in 2095. Given that there were 69 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.