As the length of the unexpired term of a Borehamwood and Elstree residential lease decreases so does its value and therefore the value of your property. If the residual term has, over one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner than later. The majority of flat owners in Borehamwood and Elstree will qualify for this right; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Borehamwood and Elstree with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Borehamwood and Elstree leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Tyler, came very close to the 80-year threshold with the lease on his basement flat in Borehamwood and Elstree. Having purchased his home twenty years previously, the length of the lease was of no interest. Fortunately, he realised he needed to take action soon on a lease extension. Tyler was able to extend his lease at the eleventh hour in June. Tyler and the landlord who owned the flat above subsequently settled on sum of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £900.
Last Autumn we were phoned by Dr I Rogers , who completed a studio flat in Borehamwood and Elstree in June 2002. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Borehamwood and Elstree with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 billed quarterly. The lease expired on 9 May 2090. Given that there were 64 years outstanding we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.
In 2012 we were e-mailed by Mr Luke Morel who, having completed a purpose-built flat in Borehamwood and Elstree in March 1998. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparable residencies in Borehamwood and Elstree with an extended lease were valued about £189,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 26 May 2079. Considering the 53 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.