On the balance of probabilities if you own a flat in Colliers Wood you actually own a long leasehold interest over your property
Leasehold properties in Colliers Wood with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Colliers Wood,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 Colliers Wood valuers.
Off the back of protracted correspondence with the freeholder of her first floor flat in Colliers Wood, Megan commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in April 2012. The landlord’s charges were negotiated to less than 600 GBP.
Mr and Mrs. I Morgan acquired a garden apartment in Colliers Wood in February 2012. The question was if we could estimate the premium could be to extend the lease by an additional years. Identical residencies in Colliers Wood with an extended lease were worth £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease came to a finish on 4 February 2085. Taking into account 61 years left we approximated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including expenses.
An example of a Lease Extension matter before the tribunal for a Colliers Wood property is 14 Nutwell Street in January 2014. The premium payable for the acquisition of a new lease of the subject premises was in the sum of £30,523 This case related to 1 flat. The number of years remaining on the existing lease(s) was 62.94 years.