It’s an underpublicised truth that a Coalville residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Coalville property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Most flat owners in Coalville will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers 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 lawyer we work with provide it.
Last October Stanley, started to get close to the eighty-year mark with the lease on his leasehold apartment in Coalville. Having bought his flat twenty years previously, the lease term was of no importance. by good luck, he realised he would imminently be paying way over the odds for Extending the lease. Stanley was able to extend his lease just under the wire in September. Stanley and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If the lease had dipped below 80 years, the sum would have gone up by a minimum £1,075.
In 2010 we were called by Mr and Mrs. F Bell who, having took over the lease of a garden apartment in Coalville in February 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by 90 years. Comparable homes in Coalville with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £45 collected yearly. The lease lapsed in 2099. Given that there were 74 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
Last Spring we were e-mailed by Mrs Lydia Morel , who owned a one bedroom flat in Coalville in January 2005. The question was if we could estimate the price could be to extend the lease by ninety years. Similar homes in Coalville with an extended lease were worth £243,000. The average ground rent payable was £65 billed quarterly. The lease elapsed in 2088. Taking into account 63 years remaining we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of costs.