There is no doubt about it a leasehold property in Coleford is a wasting asset as a result of the diminishing lease term. If the residual term has, over one hundred years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner rather than later. The majority of flat owners in Coleford will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you are eligible for a lease extension. 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 conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
Lease extensions in Coleford can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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.
Half a year ago Kyle, started to get close to the 80-year mark with the lease on his basement apartment in Coleford. Having bought his property 19 years previously, the unexpired term was of minimal bearing. As luck would have it, he recognised he needed to take action soon on a lease extension. Kyle extended the lease at the eleventh hour in May. Kyle and the landlord who owned the flat above in the end agreed on the final figure of £5,500 . If the lease had slid below eighty years, the figure would have gone up by at least £875.
Dr Y Morris completed a one bedroom apartment in Coleford in June 2004. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Coleford with 100 year plus lease were valued about £225,800. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 17 May 2085. Having 60 years left we estimated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 plus professional charges.
Last Summer we were contacted by Mr and Mrs. K Fournier , who purchased a one bedroom flat in Coleford in November 2001. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparable properties in Coleford with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease finished on 16 January 2105. Considering the 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.