The market value of Coxhoe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
Leasehold properties in Coxhoe with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Coxhoe,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 in-depth market knowledge and the close ties they enjoy with Coxhoe valuers.
Callum owned a conversion apartment in Coxhoe on the market with a lease of a few days over sixty years remaining. Callum informally approached his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. No ground rent would be due on a lease extension were Callum to invoke his statutory right. Callum procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr and Mrs. M Miller owned a garden flat in Coxhoe in October 2010. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable premises in Coxhoe with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 billed every twelve months. The lease ran out in 2103. Having 78 years unexpired we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last Spring we were called by Dr Grace Rodríguez , who owned a one bedroom apartment in Coxhoe in May 1997. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Coxhoe with an extended lease were valued around £186,000. The average ground rent payable was £65 invoiced per annum. The lease came to a finish in 2083. Considering the 58 years unexpired we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including costs.