It’s a harsh certainty that a Colindale residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Colindale property prices.Once your lease gets to 85ish years, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Colindale will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Colindale with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure Colindale lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Arthur, started to get close to the 80-year threshold with the lease on his studio flat in Colindale. In buying his flat two decades ago, the lease term was of little importance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Arthur arranged for a lease extension just under the wire last September. Arthur and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If the lease had slipped lower than eighty years, the sum would have become more costly by at least £925.
Last Autumn we were phoned by Mr and Mrs. W Lee , who took over the lease of a first floor flat in Colindale in August 2000. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparative residencies in Colindale with a long lease were worth £254,200. The average ground rent payable was £60 invoiced yearly. The lease lapsed on 14 July 2075. Taking into account 51 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.
An example of a Lease Extension case for a Colindale flat is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case was in relation to 1 flat. The remaining number of years on the lease was 70.25 years.