The market value of a leasehold property in London Colney depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be concluded in advance of the eighty year mark. Statute enables London Colney qualifying lessees to an additional term of 90 years over and above the existing term, at a notional rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle London Colney 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.
John was the the leasehold proprietor of a high value apartment in London Colney being marketed with a lease of a little over sixty years unexpired. John on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be due on a lease extension were John to exercise his statutory right. John procured expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last Autumn we were approach by Mr Jacob Walker , who completed a ground floor flat in London Colney in August 2009. We are asked if we could estimate the price would likely be to extend the lease by 90 years. Identical flats in London Colney with 100 year plus lease were worth £220,400. The mid-range amount of ground rent was £45 collected every twelve months. The lease expired in 2089. Taking into account 64 years remaining we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 plus professional charges.
In 2012 we were called by Mr and Mrs. K Robinson who, having took over the lease of a garden apartment in London Colney in January 2004. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparable properties in London Colney with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease lapsed on 10 February 2100. Having 75 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.