It’s an underpublicised truth that a Colliers Wood residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Colliers Wood property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term drops below 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Colliers Wood will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Colliers Wood,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 in-depth market knowledge and the close ties they enjoy with Colliers Wood valuers.
In 2014 Lewis, came seriously near to the eighty-year threshold with the lease on his two bedroom apartment in Colliers Wood. In buying his property twenty years ago, the unexpired term was of no relevance. by good luck, he realised he needed to take action soon on Extending the lease. Lewis extended the lease at the eleventh hour last March. Lewis and the freeholder via the managing agents subsequently settled on an amount of £6,000 . If the lease had slipped to less than 80 years, the sum would have gone up by a minimum £1,125.
Dr Luca Stewart took over the lease of a one bedroom apartment in Colliers Wood in June 2004. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical flats in Colliers Wood with an extended lease were valued about £173,800. The mid-range ground rent payable was £60 billed quarterly. The lease ran out on 26 September 2081. Having 55 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
An example of a Lease Extension matter before the tribunal 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 number of years remaining on the existing lease(s) was 62.94 years.