Coleford leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Coleford will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Coleford with in excess of 100 years remaining on the lease are often regarded as a ‘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 reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Coleford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coleford valuers.
In recent months Lucas, came dangerously near to the eighty-year threshold with the lease on his leasehold apartment in Coleford. In buying his property 18 years ago, the length of the lease was of minimal concern. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Lucas extended the lease at the eleventh hour in March. Lucas and the freeholder ultimately settled on a premium of £6,000 . If the lease had fallen to less than 80 years, the sum would have become more costly by a minimum £1,025.
Last Autumn we were e-mailed by Mr and Mrs. Y Martin , who moved into a one bedroom flat in Coleford in November 1999. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar properties in Coleford with a long lease were worth £285,000. The average ground rent payable was £45 billed quarterly. The lease finished in 2098. Considering the 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last Christmas we were approach by Ms Jessica Thomas , who acquired a recently refurbished flat in Coleford in June 1999. The dilemma was if we could estimate the price could be for a 90 year lease extension. Comparative premises in Coleford with a long lease were worth £233,200. The mid-range ground rent payable was £60 billed monthly. The lease elapsed on 3 April 2087. Considering the 61 years remaining we calculated the compensation to the landlord for the lease extension to be between £22,800 and £26,400 plus legals.