The market value of a leasehold property in Borehamwood depends on how long the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that formalities can be concluded in advance of the eighty year cut off point. Leasehold Reform legislation enables Borehamwood qualifying lessees to an additional term of ninety years on top of the existing term, at a notional rent (no ground rent). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Borehamwood with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Borehamwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Liam, started to get near to the eighty-year threshold with the lease on his studio flat in Borehamwood. In buying his flat two decades ago, the unexpired term was of little interest. As luck would have it, he noticed he would imminently be paying way over the odds for Extending the lease. Liam was able to extend his lease just ahead of time in September. Liam and the freeholder via the management company in the end agreed on an amount of £6,000 . If he failed to meet the deadline, the price would have gone up by at least £975.
Last Autumn we were called by Dr V López , who owned a studio apartment in Borehamwood in July 2007. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Identical residencies in Borehamwood with 100 year plus lease were worth £290,000. The average amount of ground rent was £60 invoiced monthly. The lease concluded in 2106. Having 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a Borehamwood flat 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.