For those whose Coleford flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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. |
Lease extensions in Coleford can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer 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 Coleford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Connor, came critically close to the eighty-year mark with the lease on his two bedroom flat in Coleford. In buying his home two decades ago, the length of the lease was of no relevance. Luckily, he recognised he needed to take steps soon on a lease extension. Connor arranged for a lease extension just under the wire last March. Connor and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he not met the deadline, the price would have become more costly by at least £1,125.
Last Winter we were e-mailed by Mr and Mrs. P Bennett , who took over the lease of a ground floor apartment in Coleford in July 2001. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar homes in Coleford with an extended lease were in the region of £295,000. The average ground rent payable was £45 billed per annum. The lease came to a finish in 2100. Considering the 75 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
In 2014 we were called by Dr U Moore who, having acquired a one bedroom flat in Coleford in November 1998. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparable properties in Coleford with a long lease were worth £250,400. The mid-range amount of ground rent was £65 invoiced yearly. The lease terminated on 24 September 2089. Considering the 64 years unexpired we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of fees.