Great Coates leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the current lease drops below eighty years - otherwise a higher premium will be payable. Flat owners in Great Coates will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Great Coates with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Great Coates,the lease extension experts that we work with will always be happy 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.
Two years ago Theo, started to get near to the eighty-year threshold with the lease on his basement apartment in Great Coates. In buying his flat two decades ago, the lease term was of minimal significance. Luckily, he noticed he would imminently be paying way over the odds for Extending the lease. Theo was able to extend his lease just under the wire last July. Theo and the freeholder in the end settled on an amount of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,100.
Last Autumn we were approach by Dr Isabella Collins , who took over the lease of a purpose-built flat in Great Coates in June 2008. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Identical premises in Great Coates with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 billed yearly. The lease finished on 22 March 2096. Taking into account 71 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2009 we were approached by Mr Hugo Gunderson who, having purchased a one bedroom apartment in Great Coates in May 2010. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Similar flats in Great Coates with a long lease were valued about £254,200. The mid-range amount of ground rent was £60 billed per annum. The lease expired on 16 April 2076. Considering the 51 years remaining we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 exclusive of legals.