The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Colchester have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Colchester lease extension. Shelving the costs today simply increases the premium you will eventually be required to pay to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Colchester 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 lawyer we work with provide it.
Callum owned a studio flat in Colchester being marketed with a lease of a few days over sixty years unexpired. Callum on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and secured an acceptable deal informally and readily saleable.
Dr Poppy Lefèvre was assigned a lease of a garden flat in Colchester in November 2010. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Identical residencies in Colchester with an extended lease were valued around £235,200. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 4 April 2090. Given that there were 66 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
Dr T Vincent took over the lease of a purpose-built apartment in Colchester in November 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Colchester with a long lease were valued around £280,000. The average ground rent payable was £55 invoiced yearly. The lease came to a finish on 26 October 2101. Considering the 77 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including professional charges.