With a domestic leasehold property in Colliers Wood, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Leasehold owners in Colliers Wood with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has less than 80 years outstanding, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Colliers Wood with more than one hundred years unexpired 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
---|---|
Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
Godiva Mortgages | 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. |
Halifax | Minimum 70 years from the date of the mortgage. |
Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Colliers Wood,the lease extension experts 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 Colliers Wood valuers.
Twenty four months ago Jacob, came dangerously close to the 80-year mark with the lease on his studio flat in Colliers Wood. Having bought his flat 19 years ago, the unexpired term was of no concern. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Jacob was able to extend his lease at the eleventh hour in March. Jacob and the freeholder subsequently settled on the final figure of £5,500 . If he not met the deadline, the figure would have escalated by at least £1,100.
Dr P Baker was assigned a lease of a first floor flat in Colliers Wood in May 2003. We are asked if we could approximate the price would be to prolong the lease by 90 years. Comparable flats in Colliers Wood with a long lease were valued about £227,800. The average amount of ground rent was £45 collected yearly. The lease ended in 2090. Having 65 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus legals.
An example of a Lease Extension matter before the tribunal for a Colliers Wood flat 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 remaining number of years on the lease was 62.94 years.