Coalville leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Coalville tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Coalville you should investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Coalville flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises 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. |
| 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; |
| 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 lawyers that we work with undertake 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.
After lengthy negotiations with the freeholder of her ground floor flat in Coalville, Laura started the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension completed in August 2011. The landlord’s fees were kept to an absolute minimum.
Mr Jayden Díaz completed a purpose-built apartment in Coalville in September 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Coalville with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 collected monthly. The lease end date was on 22 February 2078. Taking into account 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including costs.
Last February we were approach by Mrs Y Edwards , who moved into a ground floor flat in Coalville in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Coalville with a long lease were in the region of £285,000. The average amount of ground rent was £45 billed quarterly. The lease expired in 2098. Taking into account 72 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.