It’s a harsh truth that a Great Coates residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Great Coates property prices.Once your lease nears 85ish years, you need to 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 under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Great Coates will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Great Coates can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 procuring Great Coates lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry was the the leasehold proprietor of a 2 bedroom apartment in Great Coates on the market with a lease of just over fifty eight years remaining. Harry informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Harry to invoke his statutory right. Harry obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Dr Freddie Kelly was assigned a lease of a newly refurbished flat in Great Coates in September 2006. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical homes in Great Coates with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 collected annually. The lease came to a finish in 2095. Given that there were 69 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Autumn we were approach by Ms Maisie Johnson , who completed a garden apartment in Great Coates in May 1997. We are asked if we could approximate the premium would be for a ninety year lease extension. Identical flats in Great Coates with a long lease were valued around £285,000. The mid-range amount of ground rent was £55 collected quarterly. The lease terminated in 2106. Considering the 80 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including expenses.