Unfortunately that a East Coker residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the East Coker property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of flat owners in East Coker will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in East Coker with in excess of 100 years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in East Coker can be a difficult process. We recommend you obtain guidance from a lawyer 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 a wealth of experience 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.
In 2014 Ethan, started to get close to the eighty-year mark with the lease on his garden flat in East Coker. Having purchased his flat 18 years ago, the length of the lease was of minimal relevance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Ethan arranged for a lease extension just ahead of time last March. Ethan and the landlord subsequently settled on sum of £5,500 . If the lease had dropped lower than 80 years, the figure would have increased by a minimum £1,125.
Mr and Mrs. P Girard moved into a purpose-built apartment in East Coker in January 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar flats in East Coker with a long lease were in the region of £166,800. The average amount of ground rent was £50 collected monthly. The lease finished in 2075. Considering the 50 years outstanding we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.
Dr O Turner purchased a studio apartment in East Coker in February 2005. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative homes in East Coker with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease ran out on 6 May 2095. Considering the 70 years unexpired we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.