Coleford leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard 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 qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Coleford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coleford valuers.
Nathaniel was the the leasehold owner of a high value flat in Coleford on the market with a lease of fraction over 59 years remaining. Nathaniel on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Ms Chloe Girard owned a garden apartment in Coleford in March 1999. The question was if we could estimate the premium could be for a 90 year extension to my lease. Similar flats in Coleford with an extended lease were worth £208,600. The mid-range ground rent payable was £60 billed yearly. The lease lapsed in 2083. Taking into account 57 years remaining we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.
Last Autumn we were e-mailed by Mr and Mrs. D Garcia , who acquired a ground floor apartment in Coleford in October 2003. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical homes in Coleford with a long lease were worth £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired on 6 March 2103. Having 77 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.