As the length of the unexpired term of a Cowfold domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Cowfold will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Cowfold with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate 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. |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you better control over the value of your Cowfold leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Felix, started to get close to the 80-year threshold with the lease on his leasehold flat in Cowfold. Having bought his flat two decades ago, the length of the lease was of little concern. Thankfully, he recognised he needed to take steps soon on Extending the lease. Felix arranged for a lease extension just in the nick of time last May. Felix and the freeholder via the management company eventually settled on an amount of £5,500 . If the lease had gone to less than eighty years, the figure would have escalated by a minimum £1,150.
Last Autumn we were phoned by Mr and Mrs. F Thompson , who moved into a one bedroom flat in Cowfold in September 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative properties in Cowfold with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 invoiced annually. The lease expiry date was on 27 June 2088. Taking into account 62 years left we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 plus expenses.
Mr Jack Vincent bought a one bedroom apartment in Cowfold in June 2010. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Cowfold with a long lease were worth £265,000. The average amount of ground rent was £50 invoiced monthly. The lease expired on 6 February 2099. Considering the 73 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.