East Coker leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most East Coker tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in East Coker you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in East Coker with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in East Coker can be a difficult process. We recommend you secure professional help from a conveyancer and valuer 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 procuring East Coker lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a conversion apartment in East Coker on the market with a lease of fraction over sixty years left. Lucas informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert advice and secured satisfactory resolution without resorting to tribunal and readily saleable.
Ms G Patel took over the lease of a one bedroom flat in East Coker in January 1995. The question was if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in East Coker with a long lease were worth £235,600. The average amount of ground rent was £60 billed annually. The lease finished on 14 April 2087. Having 62 years left we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.
Last year we were e-mailed by Mr and Mrs. Y Watson , who took over the lease of a one bedroom apartment in East Coker in February 2003. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable homes in East Coker with a long lease were worth £174,200. The average amount of ground rent was £55 collected annually. The lease ended in 2076. Taking into account 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.