The market value of a leasehold property in Coleshill depends on how many years the lease has left to run. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded in advance of the eighty year mark. Statute entitles Coleshill qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Leeds Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Coleshill,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coleshill valuers.
Off the back of lengthy correspondence with the landlord of her basement apartment in Coleshill, Poppy initiated the lease extension process as the 80 year mark was swiftly nearing. The lease extension was finalised in November 2015. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. K Petit who, having acquired a first floor apartment in Coleshill in July 2009. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar premises in Coleshill with an extended lease were in the region of £265,200. The mid-range amount of ground rent was £65 billed quarterly. The lease end date was on 18 September 2092. Taking into account 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 exclusive of legals.
In 2013 we were contacted by Mr and Mrs. F López who, having bought a one bedroom flat in Coleshill in October 2012. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable homes in Coleshill with a long lease were in the region of £198,800. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed in 2081. Having 55 years as a residual term we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 not including legals.