Unfortunately that a Coniston residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Coniston property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Coniston will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold residencies in Coniston 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Lease extensions in Coniston can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Coniston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her studio flat in Coniston, Isabelle started the lease extension process just as the lease was approaching the critical eighty-year threshold. The legal work completed in May 2012. The freeholder’s fees were kept to an absolute minimum.
Last year we were approach by Mr and Mrs. N Robinson , who moved into a purpose-built flat in Coniston in June 1997. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable flats in Coniston with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 billed quarterly. The lease lapsed in 2077. Considering the 51 years left we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.
Ms Y Mason was assigned a lease of a recently refurbished flat in Coniston in July 1998. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar properties in Coniston with a long lease were valued about £210,600. The average amount of ground rent was £45 collected quarterly. The lease concluded in 2088. Having 62 years remaining we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including legals.