Colerne leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Colerne residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Colerne you really ought to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Colerne can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 Colerne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar owned a 2 bedroom flat in Colerne being sold with a lease of a few days over fifty eight years remaining. Oscar on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Oscar to invoke his statutory right. Oscar procured expert advice and was able to make a more informed judgement and deal with the matter and sell the property.
In 2012 we were contacted by Mr and Mrs. T Brown who, having was assigned a lease of a one bedroom flat in Colerne in April 1999. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative homes in Colerne with an extended lease were in the region of £174,200. The average ground rent payable was £55 invoiced quarterly. The lease ended in 2076. Having 51 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus professional charges.
Mr M André bought a first floor flat in Colerne in July 1998. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable flats in Colerne with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 billed every twelve months. The lease concluded in 2096. Considering the 71 years remaining we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 plus expenses.