Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Bushey. Inevitably, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Bushey have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Please give due attention before putting off your Bushey lease extension. Putting off the cost now simply increases the price you will eventually have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Bushey,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bushey valuers.
Half a year ago Finley, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Bushey. Having purchased his home twenty years previously, the unexpired term was of no importance. Thankfully, he noticed he would soon be paying an escalated premium for Extending the lease. Finley arranged for a lease extension at the eleventh hour last August. Finley and the freeholder via the managing agents eventually agreed on an amount of £5,500 . If the lease had dropped below eighty years, the sum would have increased by a minimum £1,050.
In 2010 we were e-mailed by Mr and Mrs. N Rivera who, having moved into a garden apartment in Bushey in August 2005. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Bushey with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 billed quarterly. The lease came to a finish in 2090. Taking into account 64 years remaining we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including costs.
An example of a Lease Extension matter before the tribunal for a Bushey residence 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 affected 1 flat. The unexpired residue of the current lease was 70.92 years.