Unfortunately that a Coleford residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Coleford property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Coleford will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold premises in Coleford with in excess of one hundred years left on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Royal Bank of Scotland |
Lease extensions in Coleford can be a difficult process. We recommend you secure professional help from a lawyer 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 procuring Coleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Tyler, came perilously near to the eighty-year mark with the lease on his ground floor flat in Coleford. Having bought his home twenty years previously, the unexpired term was of minimal interest. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Tyler extended the lease just in the nick of time last August. Tyler and the freeholder in the end agreed on the final figure of £5,000 . If the lease had gone lower than eighty years, the figure would have increased by a minimum £1,050.
Last Autumn we were approach by Mr T Jones , who acquired a newly refurbished flat in Coleford in November 2004. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparable properties in Coleford with 100 year plus lease were in the region of £216,000. The mid-range amount of ground rent was £60 billed monthly. The lease expired on 5 June 2084. Considering the 58 years remaining we calculated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of fees.
In 2013 we were called by Mr and Mrs. C Thomas who, having acquired a first floor apartment in Coleford in March 2009. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Coleford with a long lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease concluded on 26 May 2104. Taking into account 78 years left we calculated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.