Cowes residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in Cowes with more than 100 years outstanding 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 upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold proprietor of a 2 bedroom flat in Cowes on the market with a lease of just over fifty eight years unexpired. Tommy informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Tommy to exercise his statutory right. Tommy procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Ms K Sánchez who, having acquired a garden flat in Cowes in February 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Cowes with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease termination date was on 5 March 2101. Having 75 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Mr and Mrs. I Fournier owned a one bedroom apartment in Cowes in October 2012. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable homes in Cowes with an extended lease were worth £168,800. The average ground rent payable was £60 billed quarterly. The lease ran out in 2081. Having 55 years left we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.