The re-sale value of a leasehold property in Colwall is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Statute enables Colwall qualifying lessees to acquire 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 determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Colwall leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
After protracted correspondence with the landlord of her basement apartment in Colwall, Stephanie commenced the lease extension process as the eighty year mark was rapidly advancing. The lease extension completed in September 2014. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were called by Ms Erin Girard , who took over the lease of a ground floor apartment in Colwall in October 2008. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical premises in Colwall with a long lease were valued about £275,000. The mid-range ground rent payable was £65 billed yearly. The lease came to a finish on 25 April 2094. Taking into account 68 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.
Last month we were e-mailed by Mr G Peterson , who purchased a ground floor flat in Colwall in April 2006. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical properties in Colwall with 100 year plus lease were in the region of £213,600. The mid-range amount of ground rent was £60 billed per annum. The lease ran out in 2083. Taking into account 57 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.