The nearer a domestic lease in Colsterworth nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. The majority of flat owners in Colsterworth will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
The lawyers 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 conveyancing solicitor we work with provide it.
Two years ago Zachary, started to get near to the 80-year mark with the lease on his basement flat in Colsterworth. In buying his home two decades ago, the lease term was of minimal bearing. As luck would have it, he realised he needed to take steps soon on a lease extension. Zachary extended the lease just ahead of time last September. Zachary and the landlord subsequently settled on the final figure of £5,500 . If the lease had gone lower than 80 years, the sum would have increased by at least £1,050.
In 2014 we were contacted by Mr Harrison Turner who, having purchased a one bedroom flat in Colsterworth in May 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Colsterworth with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2105. Considering the 79 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.
Last Summer we were phoned by Mrs D Evans , who bought a garden flat in Colsterworth in February 2006. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Colsterworth with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 collected every twelve months. The lease terminated on 23 November 2094. Having 68 years left we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.