The only way is down when it comes to Coalville lease terms. Coalville leaseholds that have a lease term less than than 80 years will reduce in value even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Coalville 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.
In the wake of eight months of lengthy discussions with the freeholder of her one bedroom apartment in Coalville, Ella started the lease extension process as the 80 year threshold was quickly nearing. The transaction was concluded in November 2007. The freeholder’s charges were kept to an absolute minimum.
Last year we were called by Dr Muhammad Adams , who bought a recently refurbished flat in Coalville in June 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Coalville with a long lease were valued about £250,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2090. Having 64 years outstanding we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including expenses.
In 2009 we were called by Mr N Ricardo who, having owned a one bedroom apartment in Coalville in October 2002. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Coalville with an extended lease were in the region of £189,000. The average amount of ground rent was £55 collected monthly. The lease concluded on 11 September 2079. Taking into account 53 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including fees.