Chances are that where you own a flat in Colney Hatch you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Colney Hatch leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Joseph, came seriously near to the eighty-year threshold with the lease on his purpose- built apartment in Colney Hatch. In buying his property two decades ago, the length of the lease was of minimal bearing. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Joseph arranged for a lease extension at the eleventh hour last March. Joseph and the landlord eventually agreed on the final figure of £5,000 . If the lease had slipped lower than eighty years, the price would have become more costly by a minimum £950.
Mr and Mrs. B Bennett purchased a ground floor apartment in Colney Hatch in July 1995. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Colney Hatch with a long lease were worth £270,000. The mid-range amount of ground rent was £65 collected per annum. The lease concluded on 2 June 2094. Having 68 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
An example of a Lease Extension case for a Colney Hatch flat 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 term as at the valuation date was 68 years.