The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Coedpoeth may extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give careful consideration before delaying your Coedpoeth lease extension. Postponing that expense now simply escalates the price you will eventually have to pay to extend the lease.
Leasehold properties in Coedpoeth with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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 conveyancing solicitors that we work with handle Coedpoeth 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.
Trailing protracted correspondence with the landlord of her studio flat in Coedpoeth, Phoebe commenced the lease extension process as the 80 year threshold was rapidly coming. The lease extension was finalised in February 2008. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were e-mailed by Dr B Wilson , who acquired a basement apartment in Coedpoeth in June 2004. The question was if we could approximate the premium could be for a ninety year lease extension. Identical residencies in Coedpoeth with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected monthly. The lease ended on 20 July 2095. Having 70 years remaining we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.
In 2009 we were e-mailed by Dr Isaac Smith who, having completed a ground floor flat in Coedpoeth in June 1999. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Coedpoeth with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2084. Taking into account 59 years as a residual term we calculated the premium to the landlord to extend the lease to be between £27,600 and £31,800 exclusive of fees.