Unfortunately that a Coleford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Coleford property market.Once your lease nears 85ish years, you should 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 under 80 years - otherwise a higher premium will be due. Most leasehold owners in Coleford will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some situations you may not qualify. 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 process.
Leasehold residencies in Coleford with more than 100 years remaining 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 freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you increased control over the value of your Coleford leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Aiden, came perilously near to the 80-year mark with the lease on his first floor flat in Coleford. In buying his home twenty years ago, the unexpired term was of little importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Aiden was able to extend his lease just under the wire last August. Aiden and the freeholder eventually agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the price would have escalated by at least £1,025.
Last Summer we were approach by Mr and Mrs. E Moreau , who took over the lease of a first floor apartment in Coleford in July 2006. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Identical homes in Coleford with an extended lease were valued about £200,000. The average ground rent payable was £50 billed per annum. The lease came to a finish on 12 August 2104. Considering the 78 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.
In 2011 we were contacted by Dr Kelsey Wilson who, having moved into a first floor flat in Coleford in January 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Coleford with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected annually. The lease finished in 2093. Given that there were 67 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of legals.