Top reasons for Coleford lease extension
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Why you should start your Coleford lease extension today: </h3>
<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/coleford">Coleford</a> lease depreciates with the years remaining on the lease.
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<p> It’s a harsh truth that a Coleford residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Coleford property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Coleford will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
<h4>An extended lease is almost the same value as a freehold</h4>
<p> It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
<h4>Banks and Building Societies will not lend on a short lease</h4> Most mortgage lenders will be unwilling to lend on a lease with under 70 years left to run - although this varies from lender to lender. A purchaser will undoubtedly find it difficult to obtain a mortgage and this will result in your Coleford property being difficult to sell or remortgage. <p>
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<td>Chelsea Building Society</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Godiva Mortgages</td>
<td> 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.
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<td>Skipton Building Society</td>
<td> 85 years from the date of completion of the mortgage<br /><br />For Buy to Let cases:<br />- lettings must not breach any of the lessee’s covenants; and<br />- consent of the lessor to lettings must be obtained if necessary
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<h4>
What makes us experts in Coleford lease extensions?
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The conveyancing solicitors that we work with undertake Coleford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
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Coleford Lease Extension Example Cases:
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<h5> Benjamin, Coleford, Gloucestershire,</h5>
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Benjamin was the the leasehold owner of a studio apartment in Coleford being marketed with a lease of just over 61 years left. Benjamin informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
<h5>Coleford case:</h5>
<p> Mr and Mrs. V Bailey took over the lease of a purpose-built apartment in Coleford in November 2003. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparative flats in Coleford with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed monthly. The lease termination date was in 2094. Given that there were 68 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
<h5>Coleford case:</h5>
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Last Summer we were phoned by Mr and Mrs. J Patel , who
acquired a studio flat in Coleford in November 2012. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar properties in Coleford with 100 year plus lease were worth £208,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 4 January 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including legals.
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