Coleford leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Coleford will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not qualify. There are also strict deadlines and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you enhanced control over the value of your Coleford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy discussions with the freeholder of her basement flat in Coleford, Amy commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension was concluded in November 2014. The freeholder’s costs were kept to an absolute minimum.
Ms Caitlin Bertrand moved into a first floor apartment in Coleford in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Coleford with 100 year plus lease were valued about £210,000. The mid-range ground rent payable was £50 billed monthly. The lease finished in 2106. Taking into account 80 years unexpired we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Last Spring we were contacted by Mr and Mrs. D Sharif , who was assigned a lease of a first floor apartment in Coleford in June 2010. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Similar flats in Coleford with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 billed annually. The lease expired on 2 January 2095. Considering the 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.