As the the remaining lease term of a Colyton domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Colyton will meet the qualifying criteria; however a conveyancing solicitor should be able to advise whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Colyton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Colyton valuers.
Two years ago Kian, came precariously near to the eighty-year threshold with the lease on his leasehold apartment in Colyton. Having purchased his property two decades ago, the unexpired term was of little relevance. Luckily, he noticed he would soon be paying way over the odds for Extending the lease. Kian was able to extend his lease just in the nick of time last September. Kian and the landlord subsequently agreed on sum of £5,000 . If the lease had fallen lower than 80 years, the amount would have increased by at least £875.
In 2011 we were contacted by Mr and Mrs. J David who, having bought a basement apartment in Colyton in October 2012. The question was if we could estimate the price could be for a ninety year lease extension. Identical properties in Colyton with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced per annum. The lease concluded on 10 May 2096. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.
In 2012 we were phoned by Dr Kate Collins who, having bought a purpose-built apartment in Colyton in February 2012. The question was if we could approximate the price would be for a 90 year lease extension. Comparable homes in Colyton with a long lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced yearly. The lease end date was on 10 March 2085. Taking into account 59 years left we estimated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 plus costs.