The nearer a residential lease in Coleford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Coleford will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Coleford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the freeholder of her two bedroom flat in Coleford, Isabel commenced the lease extension process as the 80 year threshold was rapidly coming. The legal work completed in September 2009. The freeholder’s charges were negotiated to less than 600 pounds.
In 2013 we were approached by Mr and Mrs. Y Ramírez who, having bought a ground floor flat in Coleford in August 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative properties in Coleford with an extended lease were in the region of £250,400. The average ground rent payable was £65 invoiced yearly. The lease concluded on 8 October 2090. Having 64 years outstanding we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus costs.
Last Spring we were e-mailed by Dr Bethan Garcia , who took over the lease of a one bedroom flat in Coleford in August 2007. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Coleford with 100 year plus lease were valued about £184,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease elapsed on 1 July 2079. Given that there were 53 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.