There is no doubt about it a leasehold property in Colney Hatch is a wasting asset as a result of the diminishing lease term. Where the lease has, over one hundred years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner rather than later. Many flat owners in Colney Hatch will qualify for this right; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Colney Hatch with in excess of 100 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Colney Hatch,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Colney Hatch valuers.
Two years ago Evan, came critically close to the 80-year threshold with the lease on his basement apartment in Colney Hatch. In buying his property two decades ago, the lease term was of little interest. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Evan was able to extend his lease at the eleventh hour last June. Evan and the landlord subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,025.
Mrs S Bertrand bought a ground floor flat in Colney Hatch in November 2012. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Identical residencies in Colney Hatch with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out on 15 October 2102. Given that there were 76 years left we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
An example of a Lease Extension case for a Colney Hatch residence 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 was in relation to 2 flats. The unexpired residue of the current lease was 68 years.