Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Greenford. Inevitably, the length of lease remaining reduces over time. This is often overlooked and only becomes a problem when the residence has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible leaseholders in Greenford have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Greenford lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Greenford leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Eli owned a conversion apartment in Greenford being marketed with a lease of fraction over 59 years outstanding. Eli on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Eli to invoke his statutory right. Eli procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Christmas we were phoned by Mr and Mrs. A Harris , who was assigned a lease of a first floor apartment in Greenford in June 1999. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Greenford with an extended lease were valued around £173,800. The average ground rent payable was £60 billed annually. The lease lapsed on 13 October 2080. Given that there were 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of fees.
An example of a lease Extension decision for a Greenford flat is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case was in relation to 1 flat. The unexpired lease term was 58.19 years.