Colindale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Colindale residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Colindale you really ought to see if your lease has between 70 and 90 years left. There are good reasons why a Colindale flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Colindale can be a difficult process. We recommend you get professional help from a lawyer and valuer with experience in this area.
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 a wealth of experience dealing with Colindale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad was the the leasehold proprietor of a studio flat in Colindale being sold with a lease of fraction over 59 years unexpired. Muhammad on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were phoned by Mr Alfie Parker who, having was assigned a lease of a basement flat in Colindale in July 2008. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Colindale with a long lease were valued about £285,000. The average ground rent payable was £55 invoiced every twelve months. The lease ran out on 26 February 2103. Taking into account 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Colindale property is 27B Hillside in February 2010. the resulting premium, all other aspects of the valuation having been agreed between the parties was set at £8,250 This case related to 1 flat. The unexpired term was 70.25 years.