Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Cowes. Inevitably, the period of lease remaining shortens over time. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Cowes have the right to extend the lease for a further ninety years under statute. Do give careful attention before delaying your Cowes lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
Leasehold properties in Cowes with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Cowes,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Cowes valuers.
Last Winter Henry, came seriously close to the eighty-year mark with the lease on his first floor apartment in Cowes. In buying his home two decades ago, the lease term was of little relevance. As luck would have it, he became aware that he needed to take action soon on Extending the lease. Henry extended the lease just under the wire in January. Henry and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he not met the deadline, the figure would have become more costly by a minimum £900.
In 2010 we were contacted by Mr and Mrs. Y Bell who, having owned a studio apartment in Cowes in October 1997. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable properties in Cowes with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 billed monthly. The lease ran out on 2 October 2082. Given that there were 56 years unexpired we calculated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Mr and Mrs. D Cook purchased a one bedroom apartment in Cowes in August 2010. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Identical properties in Cowes with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 collected per annum. The lease elapsed in 2093. Taking into account 67 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including expenses.