Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Colne. Inevitably, the term of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Colne have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give due attention before delaying your Colne lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Irrespective of whether you are a tenant or a freeholder in Colne,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Colne valuers.
Subsequent to protracted correspondence with the freeholder of her leasehold flat in Colne, Madeleine started the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in July 2014. The landlord’s charges were negotiated to under 650 GBP.
In 2011 we were e-mailed by Mr and Mrs. L Dupont who, having purchased a ground floor apartment in Colne in January 2008. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative premises in Colne with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2096. Given that there were 70 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
Last February we were e-mailed by Ms G Moreau , who owned a one bedroom apartment in Colne in November 2005. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Colne with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated on 21 January 2085. Given that there were 59 years unexpired we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.