When it comes to long leasehold property in Colnbrook, you effectively rent it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Colnbrook with a lease drawing near to 81 years unexpired should seriously consider extending it without delay. When a lease has below eighty years outstanding, under the current legislation the landlord is entitled to calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Colnbrook can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Colnbrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oscar was the the leasehold owner of a studio apartment in Colnbrook being sold with a lease of a little over 61 years left. Oscar on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Mr F Lee took over the lease of a recently refurbished flat in Colnbrook in November 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Colnbrook with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 collected per annum. The lease terminated in 2098. Considering the 72 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including expenses.
In 2014 we were called by Ms S Fournier who, having bought a studio flat in Colnbrook in June 2009. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar properties in Colnbrook with 100 year plus lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected annually. The lease came to a finish in 2078. Taking into account 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 plus costs.