The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Great Coates have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Great Coates lease extension. Putting off that expense today simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold premises in Great Coates with more than one hundred years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Great Coates,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Coates valuers.
Elijah was the the leasehold proprietor of a studio flat in Great Coates being marketed with a lease of fraction over 59 years left. Elijah on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Elijah to invoke his statutory right. Elijah obtained expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2011 we were called by Mr Jamie Rogers who, having purchased a ground floor flat in Great Coates in October 2007. We are asked if we could estimate the price would be for a 90 year lease extension. Similar residencies in Great Coates with an extended lease were worth £183,600. The average amount of ground rent was £65 invoiced quarterly. The lease expired on 22 November 2083. Taking into account 57 years outstanding we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Last year we were contacted by Mr H Wood , who bought a studio flat in Great Coates in April 1999. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Similar homes in Great Coates with a long lease were worth £245,000. The mid-range amount of ground rent was £50 billed annually. The lease finished on 27 May 2094. Having 68 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.