Colindale leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Colindale residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Colindale you would be well advised to see if your lease has between 70 and 90 years left. There are compelling reasons why a Colindale leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold properties in Colindale with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 Colindale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Colindale valuers.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built apartment in Colindale, Maisie commenced the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension was concluded in April 2010. The landlord’s charges were negotiated to a tad over five hundred GBP.
Last Autumn we were approach by Mr I Clark , who was assigned a lease of a ground floor flat in Colindale in May 2004. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Colindale with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2099. Having 74 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Colindale premises 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 affected 1 flat. The unexpired residue of the current lease was 70.25 years.