Coleford leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in Coleford will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Using our service gives you better control over the value of your Coleford leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy correspondence with the landlord of her two bedroom flat in Coleford, Jennifer commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The legal work was finalised in June 2009. The landlord’s costs were negotiated to approximately 650 GBP.
Last year we were contacted by Mr and Mrs. U Roberts , who was assigned a lease of a newly refurbished flat in Coleford in September 2002. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar residencies in Coleford with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 18 June 2096. Considering the 71 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
In 2011 we were phoned by Mr and Mrs. D Baker who, having was assigned a lease of a purpose-built flat in Coleford in October 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar residencies in Coleford with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended on 24 August 2085. Having 60 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £25,700 and £29,600 not including expenses.