The basic rule is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Cowes have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Cowes lease extension. Shelving that expense now simply escalates the amount you will eventually have to pay for a lease extension.
Leasehold properties in Cowes with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
Retaining our service will provide you enhanced control over the value of your Cowes leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold proprietor of a 2 bedroom apartment in Cowes being sold with a lease of a little over sixty years outstanding. John on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were John to invoke his statutory right. John procured expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2013 we were contacted by Mr Aarav François who, having moved into a one bedroom apartment in Cowes in March 2009. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Cowes with an extended lease were worth £227,800. The average ground rent payable was £45 invoiced annually. The lease finished in 2090. Taking into account 65 years unexpired we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Mr and Mrs. L Scott was assigned a lease of a studio flat in Cowes in February 2010. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable homes in Cowes with an extended lease were valued around £275,000. The average amount of ground rent was £55 invoiced annually. The lease ended in 2101. Considering the 76 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of expenses.