The re-sale value of a leasehold property in Cottingham depends on how many years the lease has left to run. If it is close to or fewer than eighty years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded in advance of the 80 year mark. Statute entitles Cottingham qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Leeds Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Virgin |
The conveyancers 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.
Half a year ago Nathan, started to get close to the 80-year mark with the lease on his one bedroom flat in Cottingham. Having purchased his flat 18 years ago, the length of the lease was of no interest. Fortunately, it dawned on him that he would soon be paying an inflated amount for a lease extension. Nathan extended the lease just under the wire in March. Nathan and the freeholder via the management company eventually settled on sum of £5,000 . If the lease had slipped below eighty years, the figure would have escalated by a minimum £1,150.
Last Autumn we were called by Mr O Dupont , who bought a basement apartment in Cottingham in May 2007. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical residencies in Cottingham with an extended lease were worth £225,400. The average amount of ground rent was £45 invoiced quarterly. The lease ended on 1 June 2090. Taking into account 64 years outstanding we estimated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 exclusive of costs.
Last Winter we were phoned by Dr Zachary Rodríguez , who acquired a purpose-built flat in Cottingham in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Cottingham with a long lease were worth £270,000. The mid-range ground rent payable was £55 billed yearly. The lease terminated in 2101. Considering the 75 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.