Coventry leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Coventry residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Coventry you really ought to investigate if your lease has between seventy and 90 years left. There are good reasons why a Coventry flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold premises in Coventry with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Coventry can be a difficult process. We recommend you procure professional help 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 dealing with Coventry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Zachary, started to get near to the eighty-year mark with the lease on his leasehold apartment in Coventry. In buying his home twenty years previously, the length of the lease was of little bearing. Thankfully, he realised he would imminently be paying an inflated amount for Extending the lease. Zachary extended the lease just in the nick of time in August. Zachary and the freeholder via the managing agents in the end settled on a premium of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £1,050.
In 2011 we were called by Mr and Mrs. B Moreau who, having bought a first floor flat in Coventry in March 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable flats in Coventry with 100 year plus lease were worth £255,000. The average ground rent payable was £50 billed yearly. The lease finished in 2096. Considering the 70 years remaining we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of fees.
In 2014 we were contacted by Dr O Allen who, having was assigned a lease of a one bedroom apartment in Coventry in March 1998. We are asked if we could estimate the price could be to prolong the lease by ninety years. Similar premises in Coventry with a long lease were worth £246,800. The average ground rent payable was £60 billed yearly. The lease lapsed on 15 May 2076. Having 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of legals.