The closer a residential lease in Cottesmore nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Cottesmore will qualify for this right; nevertheless a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 undertake 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.
Trailing lengthy negotiations with the freeholder of her first floor apartment in Cottesmore, Danielle commenced the lease extension process as the 80 year mark was fast coming. The transaction completed in July 2008. The freeholder’s fees were kept to an absolute minimum.
Last year we were phoned by Dr R Leroy , who purchased a one bedroom flat in Cottesmore in January 2012. We are asked if we could estimate the price would be for a 90 year extension to my lease. Comparable properties in Cottesmore with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish in 2080. Given that there were 54 years remaining we estimated the compensation to the landlord for the lease extension to be within £35,200 and £40,600 exclusive of fees.
Mr C Ward was assigned a lease of a studio flat in Cottesmore in April 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative premises in Cottesmore with a long lease were worth £295,000. The average amount of ground rent was £45 invoiced monthly. The lease concluded in 2100. Having 74 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.