The market value of a leasehold property in Coulsdon is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that a lease extension can be addressed prior to the 80 year cut off point. Current legislation enables Coulsdon qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Coulsdon with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Coulsdon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coulsdon valuers.
Last Summer Leo, started to get close to the 80-year threshold with the lease on his purpose- built flat in Coulsdon. In buying his flat 19 years previously, the unexpired term was of little significance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Leo was able to extend his lease just ahead of time last April. Leo and the landlord ultimately settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have escalated by a minimum £900.
Last Spring we were e-mailed by Ms B Rodríguez , who completed a purpose-built flat in Coulsdon in November 2002. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparable properties in Coulsdon with 100 year plus lease were in the region of £242,600. The mid-range ground rent payable was £45 invoiced per annum. The lease end date was in 2093. Taking into account 67 years outstanding we calculated the premium to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.
An example of a Freehold Enfranchisement case for a Coulsdon flat is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case affected 3 flats. The unexpired residue of the current lease was 75 years.