With a long leasehold premises in Cottesmore, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Leasehold owners in Cottesmore with a lease approaching 81 years remaining should seriously think of extending it without delay. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Cottesmore with more than one hundred years left 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 property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Lloyds TSB Scotland | 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Cottesmore leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jake was the the leasehold owner of a high value flat in Cottesmore on the market with a lease of fraction over 59 years unexpired. Jake informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Jake to invoke his statutory right. Jake obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr E Bertrand was assigned a lease of a purpose-built flat in Cottesmore in March 2008. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Identical premises in Cottesmore with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed yearly. The lease came to a finish on 22 June 2099. Considering the 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Last year we were e-mailed by Mr and Mrs. L Bailey , who acquired a basement apartment in Cottesmore in June 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Comparable residencies in Cottesmore with an extended lease were worth £240,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease termination date was on 20 June 2088. Taking into account 62 years unexpired we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.