Colyton leases on domestic deteriorating in value. Where your lease has approximately 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Colyton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Colyton with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Colyton,the lease extension solicitors 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.
Charlie was the the leasehold owner of a high value flat in Colyton on the market with a lease of fraction over 72 years outstanding. Charlie informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be due on a lease extension were Charlie to invoke his statutory right. Charlie obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. W Mercier who, having owned a purpose-built flat in Colyton in September 2001. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable homes in Colyton with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 billed per annum. The lease terminated in 2079. Taking into account 53 years unexpired we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.
Last Winter we were e-mailed by Mrs E Peterson , who took over the lease of a garden apartment in Colyton in June 2002. The question was if we could estimate the premium could be to extend the lease by an additional years. Similar residencies in Colyton with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 collected monthly. The lease ran out on 20 June 2099. Taking into account 73 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.