Main reasons to commence your Colerne lease extension

Main reasons to start your Colerne lease extension today:

A Colerne lease depreciates with the years remaining on the lease.

Colerne leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Colerne residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Colerne you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value

Colerne property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Colerne with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may not finance a property on a short lease

Many banks and building societies will not grant a mortgage on a lease with less than 70 years unexpired - although this varies between mortgage companies. A buyer will no doubt encounter difficulties in obtaining a mortgage and this could result in your Colerne property becoming difficult to sell or refinance.

What makes us experts in Colerne lease extensions?

The conveyancers that we work with procure 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 conveyancing solicitor we work with provide it.

Colerne Lease Extension Example Cases:

Jodie, Colerne, Wiltshire,

Off the back of protracted correspondence with the freeholder of her studio apartment in Colerne, Jodie initiated the lease extension process as the eighty year mark was quickly nearing. The lease extension completed in March 2010. The landlord’s fees were kept to an absolute minimum.

Colerne case:

Last Spring we were phoned by Dr K Rodríguez , who bought a garden apartment in Colerne in June 2001. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable homes in Colerne with 100 year plus lease were in the region of £210,000. The average amount of ground rent was £50 collected per annum. The lease ended on 20 April 2106. Considering the 80 years outstanding we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of legals.

Colerne case:

In 2014 we were called by Mr and Mrs. E Murphy who, having acquired a purpose-built apartment in Colerne in November 2006. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar premises in Colerne with a long lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease finished on 26 June 2095. Having 69 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.