When it comes to residential leasehold premises in Colney Hatch, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Colney Hatch with a lease approaching 81 years remaining should seriously think of extending it without delay. Once a lease has under 80 years remaining, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with undertake Colney Hatch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Isaac, started to get close to the eighty-year threshold with the lease on his purpose- built flat in Colney Hatch. In buying his property two decades ago, the lease term was of no concern. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Isaac was able to extend his lease just under the wire last August. Isaac and the freeholder via the management company subsequently settled on the final figure of £5,000 . If the lease had slid lower than eighty years, the figure would have escalated by a minimum £950.
In 2014 we were phoned by Dr E Martinez who, having bought a ground floor apartment in Colney Hatch in November 2004. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Identical premises in Colney Hatch with 100 year plus lease were valued around £208,600. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired in 2083. Considering the 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal 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.