When it comes to domestic leasehold premises in Cowley, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years left. Leasehold owners in Cowley with a lease drawing near to 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years outstanding, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Cowley with over 100 years outstanding 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 property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Cowley can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cowley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Aaron, started to get close to the eighty-year mark with the lease on his studio flat in Cowley. In buying his property 18 years ago, the unexpired term was of minimal importance. Fortunately, he realised he would imminently be paying an inflated amount for a lease extension. Aaron extended the lease just under the wire last July. Aaron and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the price would have gone up by a minimum £1,000.
In 2013 we were e-mailed by Dr Kian Alexander who, having bought a basement apartment in Cowley in October 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Cowley with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £45 invoiced annually. The lease finished on 23 September 2096. Given that there were 71 years left we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
An example of a Freehold Enfranchisement case for a Cowley residence 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 number of years remaining on the existing lease(s) was 69 years.