The nearer a domestic lease in Cowley nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 100 years remaining then this decrease may be negligible that being said there will become a stage 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 primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Cowley will qualify for this right; nevertheless a conveyancing solicitor will be able to 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 premises in Cowley with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Cowley,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Cowley valuers.
Last October Thomas, started to get close to the 80-year mark with the lease on his two bedroom apartment in Cowley. Having bought his property two decades ago, the length of the lease was of minimal interest. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Thomas was able to extend his lease just under the wire in July. Thomas and the freeholder eventually agreed on a premium of £5,500 . If he had missed the deadline, the premium would have gone up by a minimum £900.
Mrs I Campbell was assigned a lease of a garden apartment in Cowley in May 2012. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Cowley with an extended lease were in the region of £213,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease ended in 2082. Given that there were 57 years remaining we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Cowley property 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 was in relation to 2 flats. The remaining number of years on the lease was 69 years.