For those whose Coulsdon home is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Coulsdon can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Coulsdon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Riley, started to get near to the 80-year mark with the lease on his basement flat in Coulsdon. Having bought his home twenty years ago, the unexpired term was of little importance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Riley arranged for a lease extension at the eleventh hour last September. Riley and the landlord who owned the flat above ultimately settled on sum of £5,000 . If he had missed the deadline, the price would have escalated by a minimum £925.
In 2014 we were e-mailed by Dr Isobel Richardson who, having owned a newly refurbished flat in Coulsdon in March 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative flats in Coulsdon with a long lease were worth £232,800. The average ground rent payable was £45 billed per annum. The lease concluded in 2089. Given that there were 65 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus professional charges.
An example of a Freehold Enfranchisement case for a Coulsdon property 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 related to 3 flats. The unexpired term as at the valuation date was 75 years.