With a long leasehold premises in Colliers Wood, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than eighty years remaining. Residents in Colliers Wood with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has less than eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Colliers Wood with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you enhanced control over the value of your Colliers Wood leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luke owned a conversion flat in Colliers Wood on the market with a lease of just over 72 years remaining. Luke informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2010 we were called by Ms Robyn Rose who, having completed a garden flat in Colliers Wood in September 1995. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Colliers Wood with an extended lease were worth £285,000. The average amount of ground rent was £55 invoiced annually. The lease end date was on 1 September 2105. Having 79 years left we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.
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 related to 1 flat. The unexpired lease term was 62.94 years.