Main reasons to start your Colindale lease extension

Main reasons to start your Colindale lease extension today:

Increase your lease and increase your Colindale property value

Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Colindale. Inevitably, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying leaseholders in Colindale have the legal entitlement to extend the lease for a further ninety years under legislation. Do give careful deliberation before putting off your Colindale lease extension. Holding off that expense now likely increases the price you will ultimately have to pay for a lease extension

Colindale property with a lease extension is almost the same value as a freehold

Leasehold residencies in Colindale with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.

Banks and Building Societies will not finance a property with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies were content with 25 years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Colindale lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a freeholder in Colindale,the lease extension experts 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 Colindale valuers.

Colindale Lease Extension Case Studies:

Jayden, Colindale, North London,

Jayden owned a conversion apartment in Colindale on the market with a lease of just over 61 years unexpired. Jayden on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the property.

Colindale case:

Mr Jason Thomas bought a purpose-built flat in Colindale in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Colindale with 100 year plus lease were valued about £173,800. The mid-range ground rent payable was £60 invoiced annually. The lease came to a finish in 2081. Given that there were 55 years unexpired we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.