Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Borehamwood. Clearly, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Borehamwood have the right to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give due consideration before putting off your Borehamwood lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
Leasehold properties in Borehamwood 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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Borehamwood can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Borehamwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold owner of a conversion apartment in Borehamwood on the market with a lease of just over fifty eight years left. Harrison on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. No ground rent would be due on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. T González who, having acquired a one bedroom flat in Borehamwood in May 2010. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative residencies in Borehamwood with 100 year plus lease were valued around £208,200. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was on 24 September 2086. Considering the 61 years left we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 exclusive of legals.
An example of a Lease Extension case for a Borehamwood premises is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 71.73 years.