Top reasons for Cottingham lease extension

Why you should commence your Cottingham lease extension today:

A Cottingham leasehold property depreciates with the years remaining on the lease.

Chances are that where you own a flat in Cottingham you actually own a long leasehold interest over your property

Cottingham property with a lease extension is almost the same value as a freehold

Leasehold premises in Cottingham with in excess of one hundred years left on the lease are often regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders may not finance a property with a short lease

Most mortgage lenders have constrained their lending criteria in recent years and borrowers are encountering difficulties in arranging finance or re-mortgage against property with shorter lease terms, particularly under seventy years as they are considered to be insufficient security.

Get in touch with one of our Cottingham lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with procure Cottingham 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.

Cottingham Lease Extension Example Cases:

Hunter, Cottingham, East Yorkshire,

Hunter was the the leasehold owner of a high value apartment in Cottingham being marketed with a lease of fraction over fifty eight years outstanding. Hunter informally spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Cottingham case:

Dr L Wright completed a first floor flat in Cottingham in November 1997. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative premises in Cottingham with a long lease were in the region of £275,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2102. Considering the 76 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.

Cottingham case:

Dr H Ricardo was assigned a lease of a recently refurbished apartment in Cottingham in September 1998. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Cottingham with an extended lease were worth £176,200. The mid-range ground rent payable was £65 billed annually. The lease terminated in 2082. Given that there were 56 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of expenses.