Bushey leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Bushey tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Bushey you really ought to check if your lease has between 70 and 90 years left. There are good reasons why a Bushey leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold properties in Bushey with more than 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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Bushey,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bushey valuers.
Leon was the the leasehold owner of a conversion apartment in Bushey being marketed with a lease of fraction over fifty eight years outstanding. Leon on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and secured satisfactory resolution informally and sell the property.
In 2012 we were e-mailed by Dr Arthur Rivera who, having was assigned a lease of a one bedroom flat in Bushey in February 2008. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar homes in Bushey with an extended lease were worth £183,600. The average ground rent payable was £65 collected monthly. The lease expiry date was on 27 September 2083. Taking into account 57 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.
An example of a Lease Extension decision for a Bushey flat is 197 Byron Road in March 2013. In relation to the value of the extended lease the tribunal concluded that the appropriate premium should be £19237 This case was in relation to 1 flat. The remaining number of years on the lease was 70.92 years.