The only way is down when it comes to Biggin Hill lease terms. Biggin Hill flats that have a residual term lower than 80 years will reduce in value even faster, and the cost to extend your lease will go up.
Leasehold premises in Biggin Hill with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Biggin Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Tyler, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Biggin Hill. Having bought his flat 19 years previously, the length of the lease was of minimal bearing. Luckily, he recognised he needed to take action soon on Extending the lease. Tyler arranged for a lease extension just under the wire last May. Tyler and the landlord who owned the flat above in the end agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have increased by at least £900.
Mr L Walker acquired a one bedroom flat in Biggin Hill in September 1996. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Similar flats in Biggin Hill with a long lease were valued around £285,000. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 11 May 2097. Considering the 72 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
An example of a Lease Extension decision for a Biggin Hill premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case related to 1 flat. The number of years remaining on the existing lease(s) was 50.57 years.