The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Colne can extend the lease for an additional ninety years under statute. Do give careful consideration before delaying your Colne lease extension. Shelving that expense today simply increases the price you will eventually have to pay to extend the lease.
Leasehold premises in Colne with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Colne leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Rory was the the leasehold owner of a studio apartment in Colne being sold with a lease of just over fifty eight years remaining. Rory informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr Andrew Ali purchased a basement apartment in Colne in October 2007. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Identical premises in Colne with an extended lease were in the region of £290,000. The average ground rent payable was £45 invoiced yearly. The lease ended in 2098. Given that there were 73 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were contacted by Mr K Watson who, having took over the lease of a one bedroom apartment in Colne in November 2004. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar flats in Colne with 100 year plus lease were in the region of £240,600. The average ground rent payable was £65 billed quarterly. The lease lapsed on 27 June 2087. Considering the 62 years outstanding we estimated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including legals.