Main reasons to start your Colindale lease extension

Why you should start your Colindale lease extension today:

A Colindale lease depreciates with the years remaining on the lease.

Unfortunately that a Colindale residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Colindale property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Colindale will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.

Colindale property with a lease extension has roughly the same value as a freehold

Leasehold properties in Colindale with more than one hundred years left 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 home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.

Lenders may not issue a mortgage on a short lease

Lenders are really restricting their approach as regards to homes in Colindale with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or try your luck at auction thus limiting your market.

What makes us experts in Colindale lease extensions?

Retaining our service gives you increased control over the value of your Colindale leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Colindale Lease Extension Example Cases:

Alice, Colindale, North London,

Off the back of protracted correspondence with the freeholder of her two bedroom flat in Colindale, Alice initiated the lease extension process as the 80 year mark was fast approaching. The transaction was finalised in November 2015. The landlord’s charges were kept to an absolute minimum.

Colindale case:

Mr and Mrs. H Campbell moved into a basement flat in Colindale in October 2007. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar residencies in Colindale with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected annually. The lease expired on 16 August 2077. Having 51 years as a residual term we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus fees.