When it comes to long leasehold property in Borehamwood and Elstree, you are actually purchasing a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years remaining. Residents in Borehamwood and Elstree with a lease drawing near to 81 years left should seriously consider extending it sooner as opposed to later. Once the lease term has below eighty years remaining, under the current legislation the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Borehamwood and Elstree with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Engaging our service gives you increased control over the value of your Borehamwood and Elstree leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful negotiations with the freeholder of her purpose-built apartment in Borehamwood and Elstree, Kirsty initiated the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The lease extension completed in May 2009. The landlord’s costs were kept to an absolute minimum.
In 2009 we were called by Mrs Jennifer Moreau who, having bought a studio flat in Borehamwood and Elstree in August 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative premises in Borehamwood and Elstree with 100 year plus lease were in the region of £223,400. The average amount of ground rent was £60 billed per annum. The lease elapsed on 11 September 2084. Having 59 years left we estimated the compensation to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of professional charges.
In 2010 we were e-mailed by Dr Ben Rose who, having acquired a one bedroom flat in Borehamwood and Elstree in October 2004. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Borehamwood and Elstree with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed monthly. The lease concluded in 2104. Having 79 years remaining we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.