On the balance of probabilities where you own a flat in Cockermouth you actually own a long leasehold interest over your property
Leasehold residencies in Cockermouth with more than one hundred years remaining on the lease are sometimes 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 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with undertake Cockermouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Leon was the the leasehold proprietor of a conversion flat in Cockermouth on the market with a lease of a little over 72 years outstanding. Leon on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon obtained expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
Mr and Mrs. C Rivera moved into a one bedroom apartment in Cockermouth in July 1997. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Cockermouth with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 collected per annum. The lease elapsed in 2085. Considering the 59 years left we approximated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 plus costs.
Last Autumn we were called by Mr and Mrs. F Stewart , who acquired a purpose-built flat in Cockermouth in November 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Cockermouth with an extended lease were worth £205,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed on 5 May 2105. Given that there were 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £7,600 and £8,800 exclusive of costs.