The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Colindale can extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Colindale lease extension. Postponing the costs now simply increases the amount you will eventually be required to pay for a lease extension.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Colindale,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 experience and the close ties they enjoy with Colindale valuers.
Last October Ollie, started to get close to the 80-year threshold with the lease on his ground floor apartment in Colindale. Having bought his flat 19 years previously, the lease term was of minimal interest. Luckily, he realised he would imminently be paying an escalated premium for a lease extension. Ollie extended the lease at the eleventh hour last September. Ollie and the freeholder via the managing agents ultimately agreed on a premium of £5,000 . If he not met the deadline, the price would have escalated by at least £1,050.
Mr and Mrs. J David purchased a ground floor flat in Colindale in January 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical flats in Colindale with an extended lease were worth £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2093. Having 67 years remaining we estimated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including professional charges.
An example of a Lease Extension case for a Colindale residence is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case related to 1 flat. The unexpired residue of the current lease was 70.25 years.