There is no doubt about it a leasehold flat or house in Biggin Hill is a wasting asset as a result of the diminishing lease term. If the lease has, more than 99 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Many flat owners in Biggin Hill will qualify for this right; nevertheless a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Biggin Hill with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Biggin Hill,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Biggin Hill valuers.
Two years ago Harry, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Biggin Hill. In buying his flat 19 years previously, the lease term was of minimal interest. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Harry arranged for a lease extension at the eleventh hour in June. Harry and the landlord subsequently agreed on sum of £6,000 . If the lease had dropped to less than eighty years, the sum would have become more costly by at least £1,075.
Last Spring we were e-mailed by Ms R Martinez , who acquired a recently refurbished apartment in Biggin Hill in August 2004. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Comparative residencies in Biggin Hill with 100 year plus lease were worth £171,800. The mid-range ground rent payable was £55 billed quarterly. The lease elapsed on 7 February 2076. Given that there were 50 years as a residual term we estimated the premium to the landlord to extend the lease to be between £33,300 and £38,400 plus costs.
An example of a Lease Extension matter before the tribunal for a Biggin Hill flat 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.