Top reasons for Colliers Wood lease extension

Why you should commence your Colliers Wood lease extension today:

A Colliers Wood leasehold property depreciates with the years remaining on the lease.

Unfortunately 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 not fully appreciated in the first few years due to the depreciation being disguised by increases in the Colliers Wood property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Colliers Wood will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.

Colliers Wood property with a lease extension is almost the same value as a freehold

Leasehold residencies in Colliers Wood with over 100 years outstanding on the lease are often 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 upside in buying the freehold unless savings on ground rent and service charges justify it.

Lenders will not issue a mortgage on a short lease

Why use us for your lease extension in Colliers Wood?

The lawyers that we work with handle 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 conveyancer we work with provide it.

Colliers Wood Lease Extension Example Cases:

Jack, Colliers Wood, South West London

Two years ago Jack, started to get close to the 80-year threshold with the lease on his leasehold apartment in Colliers Wood. In buying his flat two decades ago, the length of the lease was of no importance. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Jack extended the lease just under the wire in March. Jack and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If the lease had gone lower than eighty years, the amount would have escalated by at least £925.

Colliers Wood case:

In 2011 we were contacted by Mrs D Edwards who, having purchased a newly refurbished flat in Colliers Wood in June 2005. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative premises in Colliers Wood with 100 year plus lease were in the region of £210,600. The average ground rent payable was £45 collected every twelve months. The lease ran out on 25 July 2088. Given that there were 62 years left we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.