Colliers Wood leases on domestic properties are gradually losing value. if your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Colliers Wood will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Colliers Wood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jamie, came seriously near to the eighty-year threshold with the lease on his first floor flat in Colliers Wood. Having purchased his property 18 years ago, the length of the lease was of minimal relevance. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Jamie extended the lease just ahead of time in June. Jamie and the freeholder via the management company subsequently agreed on a premium of £5,000 . If he not met the deadline, the amount would have increased by at least £1,025.
Last July we were e-mailed by Dr Erin Collins , who was assigned a lease of a one bedroom flat in Colliers Wood in March 2003. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Colliers Wood with a long lease were valued about £280,000. The average amount of ground rent was £55 billed yearly. The lease elapsed on 19 June 2103. Taking into account 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension decision 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 affected 1 flat. The remaining number of years on the lease was 62.94 years.