Colsterworth leases on domestic deteriorating in value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under 80 years - otherwise a higher amount will be payable. Leasehold owners in Colsterworth will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Colsterworth with over 100 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 service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Colsterworth can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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 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.
Riley owned a studio apartment in Colsterworth on the market with a lease of just over fifty eight years remaining. Riley on an informal basis approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Riley to invoke his statutory right. Riley procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Dr James Johnson took over the lease of a ground floor flat in Colsterworth in April 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Colsterworth with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 collected quarterly. The lease came to a finish on 16 September 2094. Considering the 69 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.
In 2013 we were called by Mr Edward Jackson who, having purchased a ground floor apartment in Colsterworth in October 2000. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative premises in Colsterworth with 100 year plus lease were worth £216,000. The mid-range ground rent payable was £60 collected every twelve months. The lease came to a finish in 2083. Given that there were 58 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.