On the balance of probabilities if you own a flat in Boxmoor you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Boxmoor lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Aiden was the the leasehold owner of a high value flat in Boxmoor being marketed with a lease of just over 59 years outstanding. Aiden on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and secured an acceptable resolution without resorting to tribunal and sell the flat.
In 2009 we were approached by Ms Tia Robinson who, having took over the lease of a purpose-built flat in Boxmoor in September 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Boxmoor with 100 year plus lease were worth £198,400. The average ground rent payable was £65 collected per annum. The lease lapsed in 2085. Having 59 years left we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 exclusive of fees.
In 2011 we were contacted by Mr Alfie Reed who, having owned a recently refurbished apartment in Boxmoor in August 2007. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Identical properties in Boxmoor with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed every twelve months. The lease ended in 2096. Given that there were 70 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.