Great Coates leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Great Coates enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Great Coates you would be well advised to check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Great Coates can be a difficult process. We recommend you procure guidance from a conveyancer and valuer with experience in lease extensions.
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 in-depth market knowledge dealing with 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.
Half a year ago Jonathan, came perilously near to the eighty-year mark with the lease on his ground floor flat in Great Coates. Having bought his flat two decades ago, the length of the lease was of no relevance. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Jonathan arranged for a lease extension just under the wire in March. Jonathan and the freeholder via the management company ultimately settled on a premium of £5,000 . If the lease had fallen to less than eighty years, the premium would have become more exhorbitant by at least £875.
Last Autumn we were phoned by Mr and Mrs. M Ricardo , who completed a garden apartment in Great Coates in October 1995. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparable premises in Great Coates with an extended lease were valued around £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease finished in 2076. Taking into account 50 years left we calculated the premium to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.
In 2010 we were contacted by Dr Bethan Hall who, having took over the lease of a one bedroom apartment in Great Coates in September 1995. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical residencies in Great Coates with an extended lease were in the region of £203,200. The average ground rent payable was £65 collected quarterly. The lease ran out on 11 January 2087. Given that there were 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 exclusive of expenses.