Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Cowes. Inevitably, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the property has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Cowes have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Do give careful deliberation before delaying your Cowes lease extension. Putting off that expense now likely increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Cowes,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cowes valuers.
Following protracted negotiations with the landlord of her basement apartment in Cowes, Nicole started the lease extension process as the eighty year deadline was quickly approaching. The lease extension was concluded in October 2008. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were phoned by Mr Kyle Wilson who, having took over the lease of a one bedroom flat in Cowes in March 2005. We are asked if we could approximate the price could be to prolong the lease by a further 90 years. Identical homes in Cowes with an extended lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease finished in 2097. Considering the 72 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Spring we were contacted by Dr Freddie Edwards , who purchased a one bedroom apartment in Cowes in March 1996. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Identical premises in Cowes with an extended lease were in the region of £256,600. The average amount of ground rent was £60 billed quarterly. The lease ran out on 21 May 2077. Considering the 52 years remaining we calculated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus expenses.