The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Greenford have the legal entitlement to extend the lease for a further 90 years under legislation. Do think carefully before delaying your Greenford lease extension. Postponing the costs now simply increases the price you will eventually be required to pay for a lease extension.
Leasehold residencies in Greenford with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Greenford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Greenford valuers.
George was the the leasehold proprietor of a conversion flat in Greenford on the market with a lease of just over fifty eight years left. George informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2010 we were approached by Mrs Kirsty Thomas who, having took over the lease of a one bedroom apartment in Greenford in October 2010. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparable homes in Greenford with a long lease were in the region of £208,200. The average ground rent payable was £65 collected per annum. The lease concluded on 14 July 2087. Considering the 61 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.
An example of a lease Extension decision for a Greenford residence 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 term as at the valuation date was 58.19 years.