On the balance of probabilities if you own a flat in Coleford you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Coleford can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 dealing with Coleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of lengthy negotiations with the landlord of her purpose-built flat in Coleford, Eleanor initiated the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in November 2011. The freeholder’s costs were restricted to approximately 500 pounds.
In 2013 we were e-mailed by Mrs Y Khan who, having owned a first floor apartment in Coleford in July 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable homes in Coleford with 100 year plus lease were in the region of £300,000. The average amount of ground rent was £50 billed monthly. The lease termination date was on 9 August 2102. Considering the 76 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus legals.
Mr Benjamin Smith acquired a garden flat in Coleford in October 2005. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in Coleford with 100 year plus lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected annually. The lease terminated in 2091. Taking into account 65 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.