As the length of the unexpired term of a Cowfold residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner than later. Many flat owners in Cowfold will meet the qualifying criteria; nevertheless a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Cowfold with more than 100 years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| 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 |
The conveyancers that we work with handle Cowfold lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Joshua, started to get close to the 80-year mark with the lease on his purpose- built flat in Cowfold. Having bought his home twenty years previously, the unexpired term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Joshua arranged for a lease extension at the eleventh hour last April. Joshua and the landlord who owned the flat above subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the figure would have increased by at least £1,125.
Dr Sarah Lefebvre acquired a studio flat in Cowfold in January 2007. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical residencies in Cowfold with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected yearly. The lease terminated on 2 June 2094. Given that there were 69 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Last Autumn we were phoned by Dr Gabriel Roberts , who was assigned a lease of a one bedroom flat in Cowfold in February 1999. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparable premises in Cowfold with an extended lease were worth £285,000. The average ground rent payable was £55 invoiced yearly. The lease expiry date was in 2105. Given that there were 80 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.