Cottesmore leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Cottesmore enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Cottesmore you would be well advised to see if your lease has between seventy and 90 years left. There are compelling reasons why a Cottesmore leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 conveyancing solicitors that we work with procure Cottesmore 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 conveyancer we work with provide it.
Last year Jason, came perilously near to the 80-year mark with the lease on his garden apartment in Cottesmore. Having purchased his flat two decades ago, the length of the lease was of minimal concern. by good luck, he recognised he needed to take steps soon on Extending the lease. Jason arranged for a lease extension at the eleventh hour last March. Jason and the landlord who owned the flat above in the end agreed on sum of £5,500 . If he had missed the deadline, the premium would have escalated by a minimum £900.
Mr J Lefebvre bought a ground floor apartment in Cottesmore in August 2003. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative flats in Cottesmore with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease finished in 2096. Considering the 71 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
In 2009 we were called by Dr George Edwards who, having owned a purpose-built apartment in Cottesmore in May 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Cottesmore with a long lease were valued about £230,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed on 25 November 2085. Having 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £24,700 and £28,600 not including fees.