Colney Hatch leases on residential properties are gradually losing 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. It is the case that most Colney Hatch tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Colney Hatch you must check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
Lease extensions in Colney Hatch can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 procuring Colney Hatch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Oliver, started to get near to the eighty-year mark with the lease on his basement apartment in Colney Hatch. Having bought his flat 19 years ago, the unexpired term was of no importance. Luckily, he became aware that he needed to take action soon on a lease extension. Oliver was able to extend his lease at the eleventh hour in June. Oliver and the landlord ultimately agreed on sum of £5,000 . If he not met the deadline, the premium would have gone up by a minimum £1,025.
Mr and Mrs. A Bonnet took over the lease of a garden apartment in Colney Hatch in October 2000. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar homes in Colney Hatch with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 billed every twelve months. The lease elapsed in 2095. Taking into account 69 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
An example of a Lease Extension case for a Colney Hatch property is 90 & 96 Poplar Grove in June 2013. It was held by the Tribunal that the premium to be paid for the new lease in respect of each of the flats referred should be £17,942 This case related to 2 flats. The unexpired lease term was 68 years.