Cowbridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Cowbridge tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Cowbridge you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Cowbridge with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service will provide you enhanced control over the value of your Cowbridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the freeholder of her leasehold flat in Cowbridge, Georgina initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was finalised in May 2006. The landlord’s costs were negotiated to a tad over 500 pounds.
Last Winter we were contacted by Ms Sophia Sharif , who owned a garden flat in Cowbridge in July 2005. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Identical flats in Cowbridge with a long lease were worth £285,000. The mid-range ground rent payable was £55 billed quarterly. The lease concluded on 17 May 2105. Considering the 79 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of legals.
Last Autumn we were contacted by Mrs Niamh Rose , who completed a first floor flat in Cowbridge in March 2000. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical flats in Cowbridge with a long lease were valued about £193,400. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2085. Having 59 years outstanding we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including professional charges.