With a residential leasehold property in Colwall, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years left. Residents in Colwall with a lease nearing 81 years left should seriously think of extending it sooner than later. When the lease term has under 80 years left, under the relevant statute the freeholder can calculate and levy a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
Retaining our service gives you increased control over the value of your Colwall leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Logan, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Colwall. Having purchased his property two decades ago, the length of the lease was of no importance. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Logan arranged for a lease extension just ahead of time in May. Logan and the landlord who owned the flat above ultimately agreed on sum of £6,000 . If the lease had descended to less than 80 years, the sum would have increased by a minimum £950.
Last Summer we were contacted by Mrs M Roberts , who was assigned a lease of a ground floor apartment in Colwall in June 2010. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative homes in Colwall with 100 year plus lease were valued about £210,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated in 2106. Given that there were 80 years left we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
In 2011 we were phoned by Ms L Harris who, having moved into a one bedroom flat in Colwall in March 2004. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Colwall with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease concluded in 2095. Taking into account 69 years outstanding we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.