The nearer a residential lease in Bowes Park nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, more than 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Bowes Park will meet the qualifying criteria; nevertheless a lawyer can advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Bowes Park 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.
Last year Omar, came precariously close to the eighty-year threshold with the lease on his studio apartment in Bowes Park. Having purchased his home two decades ago, the lease term was of no importance. by good luck, he recognised he needed to take action soon on a lease extension. Omar was able to extend his lease at the eleventh hour last March. Omar and the freeholder eventually settled on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by at least £950.
In 2012 we were e-mailed by Mr and Mrs. K González who, having was assigned a lease of a first floor flat in Bowes Park in February 2008. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable residencies in Bowes Park with 100 year plus lease were valued around £216,000. The mid-range ground rent payable was £60 billed annually. The lease ran out in 2083. Having 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Bowes Park property is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The unexpired term as at the valuation date was 81.79 years.