Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Colsterworth. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the residence has to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Colsterworth have the right to extend the lease for an additional ninety years in accordance with statute. Please give due consideration before putting off your Colsterworth lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold properties in Colsterworth with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Two years ago Oliver, started to get close to the eighty-year mark with the lease on his purpose- built flat in Colsterworth. In buying his property twenty years previously, the unexpired term was of minimal significance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Oliver was able to extend his lease just under the wire in July. Oliver and the landlord eventually settled on the final figure of £5,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,050.
Dr W Hill was assigned a lease of a ground floor flat in Colsterworth in August 1997. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical residencies in Colsterworth with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease terminated on 18 October 2076. Having 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus expenses.
Mrs Leah Lambert owned a purpose-built flat in Colsterworth in August 1998. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by an additional years. Similar homes in Colsterworth with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced monthly. The lease terminated in 2096. Taking into account 70 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.