Colyton leases on domestic deteriorating in value. if your lease has about 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease drops lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Colyton will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In some circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold properties in Colyton with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Colyton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful negotiations with the freeholder of her studio apartment in Colyton, Alexandra initiated the lease extension process as the eighty year threshold was quickly coming. The legal work was finalised in August 2009. The landlord’s fees were kept to an absolute minimum.
Last Winter we were phoned by Dr Cameron Phillips , who took over the lease of a recently refurbished apartment in Colyton in June 2011. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical residencies in Colyton with 100 year plus lease were valued about £205,000. The average ground rent payable was £50 billed monthly. The lease ran out in 2104. Considering the 79 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Mr and Mrs. M Mason completed a garden flat in Colyton in October 2008. We are asked if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative properties in Colyton with a long lease were in the region of £275,000. The average ground rent payable was £65 billed every twelve months. The lease end date was on 2 April 2093. Given that there were 68 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of costs.