The market value of a leasehold property in Colne depends on how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the 80 year mark. Statute enables Colne qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Colne can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Colne lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jude, came very near to the 80-year threshold with the lease on his basement apartment in Colne. In buying his property twenty years ago, the lease term was of minimal interest. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Jude arranged for a lease extension just ahead of time last January. Jude and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If the lease had descended below 80 years, the amount would have become more exhorbitant by a minimum £1,125.
Last month we were e-mailed by Mr and Mrs. F Robinson , who moved into a studio flat in Colne in April 1997. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparative properties in Colne with a long lease were in the region of £216,000. The average amount of ground rent was £60 billed monthly. The lease lapsed on 18 March 2084. Given that there were 58 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
Mr and Mrs. K Rose moved into a ground floor apartment in Colne in August 2007. The question was if we could approximate the price would likely be to extend the lease by an additional years. Comparative flats in Colne with an extended lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expired on 3 March 2104. Having 78 years outstanding we estimated the compensation to the landlord to extend the lease to be between £7,600 and £8,800 plus professional charges.