Borehamwood and Elstree leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Borehamwood and Elstree will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Borehamwood and Elstree with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Borehamwood and Elstree,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Borehamwood and Elstree valuers.
In 2014 Jude, started to get close to the eighty-year mark with the lease on his studio flat in Borehamwood and Elstree. Having bought his flat 19 years ago, the length of the lease was of minimal interest. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Jude extended the lease just ahead of time in June. Jude and the landlord ultimately agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the price would have escalated by a minimum £1,025.
In 2011 we were e-mailed by Mrs Abigail Morgan who, having took over the lease of a studio apartment in Borehamwood and Elstree in January 1998. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar residencies in Borehamwood and Elstree with an extended lease were in the region of £240,600. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2087. Taking into account 62 years as a residual term we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.
Last Autumn we were approach by Mr Edward Jones , who completed a studio apartment in Borehamwood and Elstree in August 2003. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Borehamwood and Elstree with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 invoiced yearly. The lease expired on 24 November 2076. Considering the 51 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.