Coleford leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Coleford will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Coleford with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| Santander | |
| Skipton Building Society | |
| TSB |
Engaging our service will provide you increased control over the value of your Coleford leasehold, as your property will be more valuable and saleable in respect 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.
In recent months Nathaniel, started to get close to the eighty-year mark with the lease on his purpose- built apartment in Coleford. Having purchased his property 18 years previously, the length of the lease was of no importance. As luck would have it, he recognised he would imminently be paying an escalated premium for a lease extension. Nathaniel was able to extend his lease at the eleventh hour in April. Nathaniel and the landlord in the end settled on a premium of £6,000 . If the lease had slid below 80 years, the figure would have escalated by a minimum £975.
Ms A James took over the lease of a recently refurbished flat in Coleford in October 2008. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Coleford with 100 year plus lease were valued about £166,800. The average ground rent payable was £50 collected monthly. The lease ran out on 1 July 2076. Taking into account 50 years left we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.
In 2009 we were called by Dr Jake Cox who, having completed a one bedroom apartment in Coleford in March 1998. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar homes in Coleford with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ended in 2096. Considering the 70 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.