Cockermouth leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Cockermouth will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Cockermouth with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Cockermouth leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her garden flat in Cockermouth, Sarah started the lease extension process as the eighty year deadline was rapidly approaching. The transaction completed in July 2013. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Leo Stewart who, having was assigned a lease of a garden flat in Cockermouth in July 2011. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical flats in Cockermouth with a long lease were valued about £208,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out on 28 November 2083. Considering the 57 years remaining we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 plus costs.
In 2009 we were approached by Mr A Jackson who, having acquired a studio apartment in Cockermouth in May 2009. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical premises in Cockermouth with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 billed yearly. The lease elapsed in 2103. Having 77 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.