Coven leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Coven residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Coven you should check if your lease has between 70 and ninety years left. There are good reasons why a Coven flat owner with a lease having around 80 years remaining should take steps to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Coven can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Coven lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful negotiations with the freeholder of her two bedroom flat in Coven, Emma initiated the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in July 2009. The landlord’s costs were restricted to less than four hundred pounds.
In 2013 we were e-mailed by Mr and Mrs. B Harris who, having owned a one bedroom apartment in Coven in March 2007. The dilemma was if we could approximate the premium would be to prolong the lease by ninety years. Identical homes in Coven with an extended lease were in the region of £295,000. The average amount of ground rent was £45 invoiced every twelve months. The lease end date was in 2100. Considering the 74 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Last month we were phoned by Mrs Isabella Pérez , who took over the lease of a first floor apartment in Coven in November 1997. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Coven with an extended lease were worth £248,000. The average ground rent payable was £65 collected per annum. The lease ended in 2089. Having 63 years outstanding we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including costs.