Cowfold residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Cowfold with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The lawyers 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 lawyer we work with provide it.
After lengthy negotiations with the freeholder of her ground floor apartment in Cowfold, Freya initiated the lease extension process as the eighty year mark was swiftly approaching. The legal work was finalised in September 2008. The landlord’s charges were kept to an absolute minimum.
Last month we were approach by Ms E Mason , who bought a one bedroom flat in Cowfold in May 2011. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar residencies in Cowfold with 100 year plus lease were worth £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ran out in 2086. Taking into account 60 years outstanding we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including costs.
In 2013 we were approached by Mr and Mrs. M Williams who, having purchased a basement flat in Cowfold in September 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Cowfold with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected quarterly. The lease finished on 23 June 2097. Given that there were 71 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.