London Colney residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in London Colney with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in London Colney,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with London Colney valuers.
Last October Zachary, came dangerously close to the eighty-year threshold with the lease on his ground floor apartment in London Colney. In buying his property twenty years ago, the lease term was of minimal interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Zachary extended the lease at the eleventh hour in April. Zachary and the freeholder via the management company in the end settled on a premium of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £925.
Mrs Yasmin Morgan took over the lease of a studio flat in London Colney in March 2007. The dilemma was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical residencies in London Colney with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced yearly. The lease came to a finish on 25 January 2096. Having 71 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.
In 2011 we were contacted by Mr and Mrs. J Cox who, having moved into a one bedroom apartment in London Colney in May 2008. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in London Colney with 100 year plus lease were worth £254,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease elapsed on 6 May 2076. Having 51 years remaining we approximated the premium to the landlord to extend the lease to be between £43,700 and £50,600 plus costs.