The market value of Borehamwood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Borehamwood with in excess of one hundred years unexpired 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Chelsea 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Borehamwood,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Borehamwood valuers.
18 months ago Ollie, came seriously near to the 80-year threshold with the lease on his leasehold apartment in Borehamwood. Having bought his home 18 years previously, the length of the lease was of no bearing. As luck would have it, he became aware that he would soon be paying an escalated premium for Extending the lease. Ollie arranged for a lease extension at the eleventh hour in May. Ollie and the freeholder via the managing agents eventually settled on a premium of £5,500 . If the lease had descended to less than eighty years, the price would have gone up by at least £1,050.
Last month we were approach by Mr M Brown , who bought a studio apartment in Borehamwood in April 2003. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Borehamwood with a long lease were in the region of £235,200. The average ground rent payable was £45 billed per annum. The lease lapsed on 7 July 2091. Given that there were 66 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
An example of a Lease Extension decision for a Borehamwood residence 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 related to 1 flat. The unexpired term as at the valuation date was 71.73 years.