Coniston leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Coniston will usually qualify for a lease extension; however a solicitor will check if you qualify. In some cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Coniston with over one hundred years remaining 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Coniston can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
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.
Joshua owned a studio apartment in Coniston being sold with a lease of just over 72 years outstanding. Joshua informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
In 2012 we were contacted by Mr and Mrs. T Dupont who, having was assigned a lease of a studio apartment in Coniston in November 1997. The question was if we could estimate the premium could be to prolong the lease by 90 years. Comparable premises in Coniston with an extended lease were valued around £176,200. The mid-range ground rent payable was £65 billed yearly. The lease ended on 24 May 2081. Taking into account 56 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £29,500 and £34,000 not including legals.
Last April we were contacted by Dr C López , who moved into a first floor apartment in Coniston in July 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Coniston with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 billed monthly. The lease ran out in 2092. Given that there were 67 years unexpired we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of fees.