The nearer a domestic lease in Coleford nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, over 125 years remaining then this decrease may be of little impact however there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Most flat owners in Coleford will qualify for this right; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Coleford with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Coleford,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coleford valuers.
Lewis owned a 2 bedroom flat in Coleford being sold with a lease of just over 61 years remaining. Lewis on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. 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 to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2013 we were contacted by Mr M Moore who, having acquired a one bedroom apartment in Coleford in June 2006. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparative residencies in Coleford with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2091. Considering the 65 years outstanding we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including fees.
In 2012 we were contacted by Mr and Mrs. M Vincent who, having acquired a purpose-built flat in Coleford in April 1995. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Identical homes in Coleford with a long lease were worth £191,400. The mid-range ground rent payable was £55 collected per annum. The lease expired on 5 June 2080. Taking into account 54 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £34,200 and £39,600 not including professional charges.