Colnbrook leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Colnbrook residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Colnbrook you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Colnbrook flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
Leasehold residencies in Colnbrook with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your Colnbrook leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy correspondence with the landlord of her garden flat in Colnbrook, Ellie started the lease extension process as the 80 year deadline was swiftly advancing. The legal work was concluded in September 2010. The landlord’s charges were negotiated to less than 550 pounds.
In 2014 we were phoned by Mrs K Robinson who, having owned a first floor apartment in Colnbrook in September 2002. We are asked if we could approximate the premium would be to prolong the lease by ninety years. Comparative flats in Colnbrook with an extended lease were in the region of £210,600. The average ground rent payable was £45 collected monthly. The lease elapsed on 6 August 2087. Considering the 62 years left we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of legals.
Last Winter we were approach by Mr and Mrs. D Watson , who bought a one bedroom flat in Colnbrook in April 2006. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical properties in Colnbrook with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed monthly. The lease finished in 2098. Considering the 73 years left we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.