Coedpoeth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Coedpoeth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Coedpoeth you should check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold premises in Coedpoeth with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Coedpoeth can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Coedpoeth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Reuben, came perilously near to the eighty-year mark with the lease on his leasehold flat in Coedpoeth. In buying his home two decades ago, the unexpired term was of no importance. As luck would have it, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Reuben extended the lease at the eleventh hour last May. Reuben and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had dipped to less than eighty years, the premium would have escalated by a minimum £1,075.
Last Summer we were contacted by Mr Milo Taylor , who completed a studio apartment in Coedpoeth in September 2009. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Similar residencies in Coedpoeth with a long lease were worth £216,000. The mid-range ground rent payable was £60 collected per annum. The lease concluded on 27 October 2083. Given that there were 58 years remaining we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including expenses.
In 2013 we were approached by Dr B Lefèvre who, having completed a one bedroom flat in Coedpoeth in July 2001. The question was if we could estimate the premium could be to prolong the lease by an additional years. Comparable properties in Coedpoeth with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease lapsed in 2103. Taking into account 78 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.