Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Colliers Wood. Clearly, the length of lease left shortens over time. This may pass by relatively unnoticed when the residence has to be sold or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Colliers Wood have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Colliers Wood lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
Leasehold properties in Colliers Wood with in excess of 100 years unexpired on the lease are often 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
The conveyancers that we work with undertake Colliers Wood 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.
16 months ago Ryan, started to get near to the eighty-year mark with the lease on his garden apartment in Colliers Wood. In buying his flat two decades ago, the unexpired term was of little significance. Luckily, he realised he needed to take steps soon on a lease extension. Ryan extended the lease at the eleventh hour last March. Ryan and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had dipped lower than eighty years, the sum would have become more costly by at least £1,025.
Mr and Mrs. Y Vincent purchased a basement flat in Colliers Wood in November 1998. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Colliers Wood with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 collected annually. The lease ran out on 17 May 2078. Having 53 years left we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.
An example of a Lease Extension decision for a Colliers Wood residence 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 affected 1 flat. The unexpired lease term was 62.94 years.