For those whose Coxhoe flat is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Coxhoe with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Coxhoe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coxhoe valuers.
In recent months Zachary, started to get near to the eighty-year threshold with the lease on his garden apartment in Coxhoe. Having bought his home twenty years ago, the unexpired term was of little significance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Zachary arranged for a lease extension at the eleventh hour last January. Zachary and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the amount would have gone up by a minimum £875.
Mr and Mrs. J Watson was assigned a lease of a basement flat in Coxhoe in August 2003. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Coxhoe with a long lease were worth £193,400. The average amount of ground rent was £65 invoiced per annum. The lease elapsed in 2084. Having 59 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.
In 2009 we were contacted by Mr and Mrs. N Laurent who, having purchased a studio flat in Coxhoe in February 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Coxhoe with an extended lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease expiry date was on 9 February 2095. Having 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.