London Colney leases on residential properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in London Colney will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold residencies in London Colney with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her basement flat in London Colney, Aimee started the lease extension process just as her lease was nearing the critical 80-year deadline. The legal work was finalised in October 2007. The landlord’s costs were kept to an absolute minimum.
Last Spring we were phoned by Mr D Johnson , who acquired a basement apartment in London Colney in September 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in London Colney with an extended lease were valued around £280,000. The mid-range amount of ground rent was £55 collected monthly. The lease ended on 18 June 2104. Having 78 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2009 we were e-mailed by Ms L Hernández who, having moved into a studio flat in London Colney in January 2012. The question was if we could estimate the price would be for a 90 year lease extension. Comparative homes in London Colney with an extended lease were in the region of £186,000. The mid-range ground rent payable was £65 invoiced annually. The lease finished in 2084. Having 58 years remaining we calculated the compensation to the landlord for the lease extension to be between £24,700 and £28,600 not including professional charges.