Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Colyton. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Eligible long lease owners in Colyton have the right to extend the lease for a further ninety years in accordance with statute. Please give due attention before delaying your Colyton lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold residencies in Colyton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder 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.
Trailing unsuccessful negotiations with the freeholder of her purpose-built flat in Colyton, Mollie initiated the lease extension process just as the lease was coming close to the all-important 80-year threshold. The legal work completed in August 2011. The landlord’s costs were negotiated to a tad over 500 GBP.
In 2013 we were phoned by Mr and Mrs. C Wright who, having purchased a first floor flat in Colyton in January 2012. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar residencies in Colyton with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 17 January 2076. Given that there were 51 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
Last Spring we were phoned by Dr Finley Jones , who acquired a basement flat in Colyton in February 2007. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar flats in Colyton with a long lease were valued about £285,000. The average amount of ground rent was £45 invoiced yearly. The lease came to a finish in 2096. Considering the 71 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.