There is no doubt about it a leasehold property in East Cowes is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in East Cowes will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in East Cowes with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Birmingham Midshires | 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. |
Irrespective of whether you are a tenant or a landlord in East Cowes,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 East Cowes valuers.
Finley owned a high value apartment in East Cowes being sold with a lease of a little over sixty years remaining. Finley informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Dr Jacob Peterson who, having acquired a one bedroom apartment in East Cowes in October 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in East Cowes with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease elapsed on 19 May 2077. Having 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 not including costs.
Dr A Ricardo was assigned a lease of a studio flat in East Cowes in August 1996. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Comparable flats in East Cowes with a long lease were worth £218,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 17 August 2088. Having 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including legals.