The value of Cowley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold residencies in Cowley with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Cowley,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 Cowley valuers.
Off the back of lengthy negotiations with the freeholder of her basement apartment in Cowley, Danielle commenced the lease extension process as the eighty year mark was rapidly approaching. The lease extension completed in April 2006. The landlord’s fees were kept to an absolute minimum.
In 2009 we were approached by Mr T Ramírez who, having owned a first floor flat in Cowley in April 2009. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable homes in Cowley with a long lease were worth £270,000. The average ground rent payable was £65 billed quarterly. The lease terminated in 2094. Taking into account 68 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Cowley flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.