There is no doubt about it a leasehold flat or house in Borehamwood is a wasting asset as a result of the diminishing lease term. If the lease has, more than one hundred years remaining then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending without delay. Most flat owners in Borehamwood will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Borehamwood with more than 100 years left on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Aarav, came very close to the eighty-year mark with the lease on his two bedroom flat in Borehamwood. In buying his property two decades ago, the lease term was of little bearing. As luck would have it, he noticed he would imminently be paying an escalated premium for a lease extension. Aarav was able to extend his lease at the eleventh hour in April. Aarav and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the premium would have gone up by at least £1,025.
In 2012 we were phoned by Mr and Mrs. L Walker who, having completed a one bedroom apartment in Borehamwood in October 2007. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar flats in Borehamwood with a long lease were valued around £285,000. The average ground rent payable was £55 billed per annum. The lease terminated on 16 February 2105. Taking into account 79 years outstanding we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
An example of a Lease Extension decision 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 unexpired term as at the valuation date was 71.73 years.