Cockermouth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Cockermouth tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Cockermouth you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold residencies in Cockermouth with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Cockermouth can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Cockermouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted discussions with the freeholder of her basement apartment in Cockermouth, Jade started the lease extension process as the 80 year threshold was rapidly coming. The legal work was concluded in June 2012. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were phoned by Dr L Bennett who, having bought a purpose-built flat in Cockermouth in July 2002. The dilemma was if we could estimate the price could be for a ninety year lease extension. Similar flats in Cockermouth with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 invoiced per annum. The lease came to a finish on 1 February 2100. Considering the 74 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Winter we were called by Mr and Mrs. S Girard , who bought a basement flat in Cockermouth in April 1998. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative flats in Cockermouth with 100 year plus lease were in the region of £243,000. The mid-range ground rent payable was £65 collected monthly. The lease finished on 24 April 2089. Given that there were 63 years remaining we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus professional charges.