Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Colnbrook. Clearly, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in Colnbrook have the right to extend the lease for a further 90 years under legislation. Do give due deliberation before delaying your Colnbrook lease extension. Putting off that expense now simply increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with procure Colnbrook 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 lawyer we work with provide it.
After lengthy negotiations with the freeholder of her garden apartment in Colnbrook, Molly commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The legal work was concluded in June 2005. The freeholder’s charges were negotiated to less than 700 GBP.
In 2014 we were contacted by Mr and Mrs. U Mercier who, having bought a purpose-built flat in Colnbrook in September 1999. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Colnbrook with a long lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced monthly. The lease termination date was in 2079. Considering the 53 years outstanding we approximated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 exclusive of costs.
In 2009 we were approached by Dr U Bell who, having took over the lease of a one bedroom apartment in Colnbrook in February 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable homes in Colnbrook with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 collected annually. The lease expiry date was on 1 September 2090. Taking into account 64 years unexpired we calculated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of expenses.