Coulsdon leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be payable. Flat owners in Coulsdon will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Coulsdon 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 upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Coulsdon,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coulsdon valuers.
In 2014 Daniel, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Coulsdon. Having bought his home two decades ago, the length of the lease was of minimal relevance. Thankfully, he noticed he would imminently be paying an escalated premium for Extending the lease. Daniel extended the lease just ahead of time last June. Daniel and the freeholder via the management company eventually agreed on the final figure of £6,000 . If the lease had fallen lower than 80 years, the figure would have become more exhorbitant by a minimum £1,000.
Dr Ethan Wilson took over the lease of a ground floor flat in Coulsdon in June 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by a further 90 years. Similar residencies in Coulsdon with 100 year plus lease were valued about £290,000. The average amount of ground rent was £60 collected annually. The lease came to a finish on 3 June 2106. Taking into account 80 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.
An example of a Freehold Enfranchisement case for a Coulsdon residence 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 remaining number of years on the lease was 75 years.