Coulsdon leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Coulsdon will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Coulsdon with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you better control over the value of your Coulsdon leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Ryan, started to get near to the eighty-year threshold with the lease on his garden flat in Coulsdon. In buying his flat 18 years ago, the length of the lease was of little relevance. by good luck, he realised he would soon be paying an escalated premium for Extending the lease. Ryan arranged for a lease extension just under the wire last July. Ryan and the freeholder via the managing agents in the end settled on an amount of £5,500 . If he had missed the deadline, the price would have become more exhorbitant by at least £1,125.
Mr N Cook completed a one bedroom flat in Coulsdon in November 2004. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Identical properties in Coulsdon with 100 year plus lease were worth £265,000. The average ground rent payable was £50 invoiced every twelve months. The lease expiry date was in 2099. Having 73 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
An example of a Freehold Enfranchisement decision 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 was in relation to 3 flats. The remaining number of years on the lease was 75 years.