There is no doubt about it a leasehold flat or house in East Cowes is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years remaining then this decrease may be fractional however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in East Cowes will meet the qualifying criteria; however a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in East Cowes with over 100 years remaining 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in East Cowes,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with East Cowes valuers.
Two years ago Felix, started to get near to the eighty-year mark with the lease on his garden flat in East Cowes. In buying his property 19 years ago, the length of the lease was of no bearing. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Felix arranged for a lease extension just ahead of time last January. Felix and the freeholder via the management company in the end agreed on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £850.
Last year we were phoned by Mr Archie Rogers , who completed a first floor apartment in East Cowes in November 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar flats in East Cowes with a long lease were valued around £237,600. The mid-range ground rent payable was £45 collected yearly. The lease ended on 13 April 2092. Considering the 67 years outstanding we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of costs.
In 2012 we were called by Mr and Mrs. G Brown who, having completed a purpose-built flat in East Cowes in January 2011. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in East Cowes with an extended lease were valued around £280,000. The average amount of ground rent was £55 invoiced monthly. The lease lapsed in 2103. Considering the 78 years outstanding we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.