Chances are that where you own a flat in Boreham you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Boreham,the lease extension solicitors 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 Boreham valuers.
Matthew owned a 2 bedroom apartment in Boreham on the market with a lease of a few days over 59 years unexpired. Matthew informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Matthew to exercise his statutory right. Matthew obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the property.
In 2014 we were called by Dr Lily Michel who, having bought a one bedroom flat in Boreham in July 2005. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar flats in Boreham with 100 year plus lease were worth £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease expired on 12 November 2096. Given that there were 70 years remaining we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
Last month we were contacted by Dr Nathan Morel , who acquired a one bedroom apartment in Boreham in November 2001. We are asked if we could approximate the price would be to extend the lease by 90 years. Identical flats in Boreham with a long lease were valued around £246,800. The mid-range amount of ground rent was £60 invoiced quarterly. The lease expiry date was in 2076. Having 50 years left we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus expenses.