Colerne leases on residential deteriorating in value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' in addition to 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. Leasehold owners in Colerne will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Colerne with more than one hundred years left on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Nationwide Building Society |
The lawyers that we work with undertake Colerne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Kian owned a high value apartment in Colerne being sold with a lease of just over sixty years remaining. Kian on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Last Christmas we were phoned by Dr Georgia Lee , who completed a one bedroom apartment in Colerne in July 2005. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Colerne with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed monthly. The lease expiry date was in 2087. Taking into account 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 plus costs.
Last Christmas we were approach by Mr and Mrs. M Johnson , who bought a newly refurbished flat in Colerne in November 2004. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Colerne with 100 year plus lease were worth £166,800. The mid-range ground rent payable was £50 billed annually. The lease expired in 2076. Having 50 years unexpired we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of expenses.