Cottesmore leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Flat owners in Cottesmore will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict timetables and formalities to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Cottesmore can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Cottesmore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her one bedroom apartment in Cottesmore, Rosie started the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in July 2008. The freeholder’s fees were negotiated to slightly above 550 pounds.
In 2011 we were phoned by Ms J Bailey who, having bought a purpose-built flat in Cottesmore in June 1998. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative flats in Cottesmore with a long lease were valued around £223,400. The average amount of ground rent was £60 billed yearly. The lease elapsed on 22 January 2085. Taking into account 59 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of fees.
In 2010 we were called by Dr Hunter Carter who, having purchased a one bedroom apartment in Cottesmore in May 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical premises in Cottesmore with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 invoiced per annum. The lease ran out in 2105. Considering the 79 years unexpired we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.