When it comes to long leasehold property in East Cowes, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension 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 greater notably once there are less than eighty years remaining. Leasehold owners in East Cowes with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years outstanding, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your East Cowes leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the landlord of her first floor flat in East Cowes, Millie commenced the lease extension process as the eighty year mark was fast nearing. The transaction was finalised in March 2006. The freeholder’s costs were restricted to approximately four hundred GBP.
Mr Lewis Lambert acquired a studio flat in East Cowes in April 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative homes in East Cowes with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease termination date was on 17 October 2100. Having 74 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Spring we were e-mailed by Dr Caleb Leroy , who purchased a garden apartment in East Cowes in February 1997. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in East Cowes with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 collected quarterly. The lease lapsed in 2079. Considering the 53 years remaining we approximated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of professional charges.