Coalville leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Flat owners in Coalville will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Coalville with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
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 conveyancer we work with provide it.
Dylan was the the leasehold proprietor of a high value apartment in Coalville on the market with a lease of just over fifty eight years unexpired. Dylan informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Dylan to exercise his statutory right. Dylan obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the property.
In 2013 we were called by Dr Joshua Harris who, having bought a ground floor apartment in Coalville in April 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Coalville with a long lease were valued around £275,000. The average ground rent payable was £45 collected per annum. The lease elapsed in 2095. Taking into account 69 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including fees.
Dr I Norbert completed a one bedroom apartment in Coalville in October 1996. The question was if we could estimate the premium would likely be to extend the lease by ninety years. Identical properties in Coalville with a long lease were worth £216,000. The average ground rent payable was £60 invoiced per annum. The lease terminated on 26 January 2084. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.