With a domestic leasehold premises in Greenford, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Anyone in Greenford with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once a lease has less than eighty years remaining, under the relevant Act the landlord can calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
Lender | Requirement |
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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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
National Westminster Bank | Mortgage term plus 30 years. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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. |
Regardless of whether you are a tenant or a freeholder in Greenford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Greenford valuers.
In recent months John, came seriously near to the eighty-year mark with the lease on his garden flat in Greenford. In buying his home 19 years ago, the lease term was of no bearing. Fortunately, he noticed he would imminently be paying an escalated premium for Extending the lease. John extended the lease just under the wire in May. John and the landlord who owned the flat above eventually settled on sum of £6,000 . If he not met the deadline, the sum would have increased by at least £1,000.
Last Christmas we were contacted by Mr and Mrs. C Howard , who completed a purpose-built apartment in Greenford in May 2011. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Greenford with a long lease were valued around £191,000. The mid-range ground rent payable was £65 invoiced monthly. The lease finished on 12 October 2083. Having 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.
An example of a lease Extension decision for a Greenford premises is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case affected 1 flat. The unexpired term was 58.19 years.