With a residential leasehold premises in Great Coates, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Great Coates with a lease nearing 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has below 80 years outstanding, under the current statute the landlord can calculate and levy a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Great Coates with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Great Coates leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Michael, came seriously near to the 80-year mark with the lease on his studio flat in Great Coates. In buying his flat 19 years previously, the unexpired term was of little interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Michael was able to extend his lease at the eleventh hour last April. Michael and the landlord in the end agreed on an amount of £5,000 . If he failed to meet the deadline, the price would have escalated by at least £1,000.
Last Autumn we were e-mailed by Mr S Edwards , who was assigned a lease of a one bedroom apartment in Great Coates in June 2007. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Great Coates with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish in 2099. Having 74 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Last November we were contacted by Mr and Mrs. T Clarke , who purchased a one bedroom flat in Great Coates in September 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Comparative homes in Great Coates with an extended lease were in the region of £166,400. The average ground rent payable was £60 billed per annum. The lease finished in 2079. Taking into account 54 years unexpired we calculated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus costs.