Unfortunately that a Colwall residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Colwall property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of flat owners in Colwall will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold premises in Colwall with in excess of 100 years remaining on the lease are often regarded as a ‘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 upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Santander | |
| Skipton Building Society |
Lease extensions in Colwall can be a difficult process. We recommend you secure professional help from a lawyer 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 in-depth market knowledge procuring Colwall lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted correspondence with the landlord of her first floor apartment in Colwall, Niamh started the lease extension process as the eighty year deadline was fast coming. The transaction was concluded in June 2010. The landlord’s costs were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. I Jackson , who took over the lease of a first floor apartment in Colwall in June 2011. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar flats in Colwall with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected monthly. The lease expired in 2099. 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 plus expenses.
Dr R Gómez owned a first floor apartment in Colwall in November 2000. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Colwall with 100 year plus lease were in the region of £240,600. The average ground rent payable was £65 invoiced per annum. The lease came to a finish on 18 November 2088. Given that there were 62 years left we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.