The only way is down when it comes to Coxhoe lease terms. Coxhoe leaseholds that have a residual term shorter than eighty years will de-escalate in value even faster, and the cost to extend your lease will go up.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure Coxhoe 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 conveyancing solicitor we work with provide it.
Teddy owned a studio flat in Coxhoe on the market with a lease of a few days over fifty eight years outstanding. Teddy on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Teddy to exercise his statutory right. Teddy procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Autumn we were e-mailed by Mr N Ali , who completed a one bedroom flat in Coxhoe in June 2001. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Comparative properties in Coxhoe with 100 year plus lease were in the region of £256,600. The mid-range ground rent payable was £60 invoiced quarterly. The lease elapsed in 2077. Considering the 52 years left we approximated the premium to the landlord for the lease extension to be within £41,800 and £48,400 plus expenses.
In 2013 we were contacted by Mrs F Lambert who, having acquired a one bedroom apartment in Coxhoe in February 2009. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar residencies in Coxhoe with 100 year plus lease were in the region of £218,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 8 June 2088. Having 63 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 exclusive of fees.