With a residential leasehold premises in Coleford, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Coleford with a lease approaching 81 years remaining should seriously consider extending it without delay. Once the lease term has below 80 years left, under the relevant Act the landlord is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Coleford with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Lease extensions in Coleford can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 dealing with Coleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben was the the leasehold proprietor of a high value flat in Coleford on the market with a lease of a few days over 61 years unexpired. Reuben on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Dr B Wood moved into a first floor flat in Coleford in July 2000. The dilemma was if we could estimate the premium would likely be to prolong the lease by ninety years. Identical residencies in Coleford with an extended lease were valued around £240,600. The mid-range ground rent payable was £60 billed monthly. The lease ended on 3 April 2088. Given that there were 62 years remaining we estimated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including costs.
Last Autumn we were contacted by Mrs Chloe Mercier , who purchased a basement flat in Coleford in February 1996. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar homes in Coleford with 100 year plus lease were worth £174,200. The mid-range ground rent payable was £55 collected yearly. The lease ended in 2077. Taking into account 51 years outstanding we estimated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 not including costs.