On the balance of probabilities if you own a flat in Cottingham you actually own a long leasehold interest over your property
Leasehold premises in Cottingham with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a freeholder in Cottingham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cottingham valuers.
Last October Milo, came seriously close to the eighty-year threshold with the lease on his one bedroom apartment in Cottingham. Having bought his flat two decades ago, the unexpired term was of little concern. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Milo arranged for a lease extension at the eleventh hour last June. Milo and the landlord eventually settled on a premium of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,100.
Last Summer we were approach by Mr Andrew François , who acquired a recently refurbished flat in Cottingham in May 2006. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Cottingham with 100 year plus lease were in the region of £246,800. The average amount of ground rent was £60 collected quarterly. The lease came to a finish on 2 April 2076. Having 50 years left we estimated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus fees.
In 2013 we were approached by Dr B Young who, having completed a garden flat in Cottingham in October 2010. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical homes in Cottingham with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease ended in 2087. Taking into account 61 years left we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.