For anyone whose Colsterworth flat is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a 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 further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Colsterworth can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 a wealth of experience procuring Colsterworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Dylan was the the leasehold proprietor of a conversion flat in Colsterworth on the market with a lease of a little over 72 years unexpired. Dylan informally approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were approach by Mr and Mrs. D David , who bought a purpose-built apartment in Colsterworth in November 1996. The dilemma was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Colsterworth with a long lease were worth £189,000. The mid-range amount of ground rent was £55 collected yearly. The lease finished on 7 January 2078. Having 53 years remaining we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
Last Spring we were contacted by Dr Tia Gray , who bought a one bedroom flat in Colsterworth in October 1997. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Colsterworth with 100 year plus lease were valued around £290,000. The average amount of ground rent was £45 billed yearly. The lease ended on 10 October 2098. Given that there were 73 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.