It’s an underpublicised certainty that a Cowbridge residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Cowbridge property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term slips under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Cowbridge will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold residencies in Cowbridge with over one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Cowbridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cowbridge valuers.
In the wake of 9 months of protracted discussions with the freeholder of her purpose-built apartment in Cowbridge, Bethany commenced the lease extension process as the eighty year deadline was quickly nearing. The legal work was concluded in August 2005. The freeholder’s costs were kept to an absolute minimum.
Last month we were called by Dr Zoe Walker , who purchased a garden apartment in Cowbridge in September 2001. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in Cowbridge with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 billed every twelve months. The lease ended on 20 March 2081. Given that there were 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including fees.
Last Christmas we were phoned by Mr W Lefebvre , who owned a ground floor flat in Cowbridge in August 2007. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Similar premises in Cowbridge with an extended lease were valued around £237,600. The average amount of ground rent was £45 collected every twelve months. The lease lapsed on 20 June 2092. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of legals.