The market value of a leasehold property in Colsterworth is impacted by how long the lease has remaining. If it is near to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be addressed in advance of the eighty year cut off point. Statute enables Colsterworth qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Colsterworth with in excess of 100 years unexpired on the lease are sometimes 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 buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| National Westminster Bank | |
| Santander | |
| TSB |
Lease extensions in Colsterworth can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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.
Oscar owned a studio apartment in Colsterworth on the market with a lease of a little over 72 years unexpired. Oscar on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
Last August we were phoned by Mr and Mrs. E Clarke , who was assigned a lease of a first floor apartment in Colsterworth in August 2010. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparable flats in Colsterworth with an extended lease were worth £267,600. The mid-range ground rent payable was £65 collected monthly. The lease ran out on 3 June 2093. Having 67 years remaining we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 not including costs.
In 2013 we were phoned by Mrs Chloe Flores who, having bought a purpose-built apartment in Colsterworth in June 2008. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable premises in Colsterworth with an extended lease were worth £206,200. The mid-range ground rent payable was £60 invoiced per annum. The lease came to a finish in 2082. Taking into account 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.