Chances are that where you own a flat in Bedfont you actually own a long leasehold interest over your property
Leasehold properties in Bedfont with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bedfont,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 Bedfont valuers.
Last October Rory, started to get close to the eighty-year mark with the lease on his one bedroom flat in Bedfont. In buying his flat 18 years ago, the unexpired term was of no concern. by good luck, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Rory was able to extend his lease just under the wire in March. Rory and the freeholder via the management company in the end agreed on sum of £5,500 . If he not met the deadline, the sum would have escalated by at least £875.
Dr Y García acquired a studio flat in Bedfont in October 2002. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar flats in Bedfont with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ended on 28 September 2106. Considering the 80 years remaining we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension case for a Bedfont flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The unexpired lease term was 82.93 years.