Coventry leases on domestic deteriorating in value. Where your lease has in the region of 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Coventry will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Coventry leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Max, started to get near to the 80-year mark with the lease on his leasehold flat in Coventry. Having purchased his flat two decades ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Max extended the lease just ahead of time in May. Max and the freeholder via the managing agents in the end agreed on an amount of £5,000 . If the lease had gone below eighty years, the sum would have gone up by at least £850.
In 2010 we were e-mailed by Ms L Rose who, having completed a garden apartment in Coventry in November 2000. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar residencies in Coventry with an extended lease were valued about £176,200. The average amount of ground rent was £65 collected quarterly. The lease concluded on 11 March 2082. Having 56 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus fees.
Last Winter we were phoned by Mr and Mrs. J Carter , who moved into a newly refurbished flat in Coventry in October 2007. The question was if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Coventry with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease expired on 18 October 2093. Considering the 67 years as a residual term we calculated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.