The market value of Cottingham leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold premises in Cottingham with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value 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 warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Cottingham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cottingham valuers.
After lengthy discussions with the landlord of her garden flat in Cottingham, Jade commenced the lease extension process as the eighty year mark was swiftly advancing. The transaction was finalised in April 2011. The freeholder’s charges were kept to an absolute minimum.
Last year we were contacted by Mr and Mrs. I Lefebvre , who purchased a one bedroom apartment in Cottingham in May 2000. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar premises in Cottingham with a long lease were in the region of £183,600. The average ground rent payable was £65 billed every twelve months. The lease ended in 2083. Considering the 57 years remaining we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus costs.
Last Summer we were approach by Ms Elizabeth Bennett , who was assigned a lease of a purpose-built flat in Cottingham in October 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar premises in Cottingham with an extended lease were worth £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2094. Having 68 years left we estimated the premium to the freeholder to extend the lease to be within £10,500 and £12,000 plus fees.