Colyton leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Colyton enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Colyton you must investigate if your lease has between 70 and 90 years left. There are compelling reasons why a Colyton leaseholder with a lease having around 80 years left should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Colyton with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Colyton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Colyton valuers.
Two years ago Oliver, started to get near to the eighty-year mark with the lease on his one bedroom flat in Colyton. In buying his property two decades ago, the unexpired term was of little importance. by good luck, he became aware that he would imminently be paying way over the odds for Extending the lease. Oliver extended the lease just under the wire in May. Oliver and the landlord who owned the flat above eventually agreed on an amount of £6,000 . If the lease had descended to less than 80 years, the amount would have escalated by at least £1,150.
In 2011 we were approached by Mr and Mrs. N Jones who, having acquired a recently refurbished flat in Colyton in November 1998. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Identical premises in Colyton with an extended lease were in the region of £248,000. The mid-range amount of ground rent was £65 collected yearly. The lease lapsed on 3 November 2088. Taking into account 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £20,900 and £24,200 plus professional charges.
In 2013 we were contacted by Mr and Mrs. J Adams who, having completed a first floor flat in Colyton in April 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Colyton with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 collected monthly. The lease finished in 2077. Considering the 52 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.