Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Greenfield. Inevitably, the period of lease remaining shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Greenfield have the right to extend the lease for an additional 90 years in accordance with statute. You should give careful attention before delaying your Greenfield lease extension. Holding off that expense now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Greenfield can be a difficult process. We recommend you procure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
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 Greenfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her studio apartment in Greenfield, Rachael commenced the lease extension process as the 80 year threshold was fast nearing. The lease extension was concluded in March 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. H Young completed a purpose-built apartment in Greenfield in November 2011. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Comparable properties in Greenfield with 100 year plus lease were worth £183,600. The average ground rent payable was £65 collected quarterly. The lease finished on 4 August 2082. Given that there were 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of legals.
Last Autumn we were contacted by Mr and Mrs. P Murphy , who bought a ground floor apartment in Greenfield in January 1996. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable properties in Greenfield with 100 year plus lease were valued around £245,000. The mid-range ground rent payable was £50 collected yearly. The lease ended in 2093. Taking into account 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.