Cottesmore leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Cottesmore tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Cottesmore you should see if your lease has between seventy and 90 years left. There are compelling reasons why a Cottesmore leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Cottesmore with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with handle 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.
Dylan owned a 2 bedroom apartment in Cottesmore being marketed with a lease of a few days over 59 years unexpired. Dylan informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Last June we were called by Mr and Mrs. W Patel , who acquired a newly refurbished flat in Cottesmore in May 1999. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Cottesmore with an extended lease were valued about £275,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease expired on 16 April 2093. Taking into account 68 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including legals.
Mr Dexter Collins owned a one bedroom flat in Cottesmore in September 2010. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Cottesmore with a long lease were valued around £213,600. The average ground rent payable was £60 invoiced monthly. The lease finished on 16 July 2082. Given that there were 57 years left we estimated the premium to the landlord to extend the lease to be within £30,400 and £35,200 plus legals.