Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Colsterworth. Clearly, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Colsterworth have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Do give due attention before putting off your Colsterworth lease extension. Putting off that expense now only increases the price you will eventually have to pay for a lease extension
Leasehold premises in Colsterworth with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Colsterworth 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 conveyancer we work with provide it.
Thomas was the the leasehold owner of a studio flat in Colsterworth being sold with a lease of a little over 72 years unexpired. Thomas informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Thomas to exercise his statutory right. Thomas procured expert legal guidance and secured an acceptable deal informally and sell the property.
Dr Caitlin Baker acquired a garden flat in Colsterworth in August 2005. The question was if we could estimate the premium would be to prolong the lease by an additional years. Identical properties in Colsterworth with an extended lease were in the region of £240,600. The mid-range ground rent payable was £60 collected per annum. The lease terminated in 2088. Considering the 62 years unexpired we approximated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of costs.
Last Spring we were approach by Dr Daniel White , who moved into a studio apartment in Colsterworth in April 1996. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Colsterworth with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 collected annually. The lease terminated in 2077. Having 51 years unexpired we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 not including fees.