The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Charing Cross can extend the lease for an additional 90 years under statute. Please give careful consideration before delaying your Charing Cross lease extension. Postponing that expense now simply escalates the price you will eventually have to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Charing Cross,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Charing Cross valuers.
During the course of the last few months Dylan, came very close to the 80-year threshold with the lease on his two bedroom flat in Charing Cross. Having purchased his home 19 years previously, the unexpired term was of no concern. Luckily, he became aware that he would soon be paying way over the odds for a lease extension. Dylan extended the lease just under the wire in May. Dylan and the freeholder via the managing agents ultimately settled on sum of £5,000 . If he failed to meet the deadline, the sum would have increased by at least £850.
Mr and Mrs. B Allen owned a studio flat in Charing Cross in February 2008. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar homes in Charing Cross with 100 year plus lease were valued around £257,800. The mid-range ground rent payable was £65 collected monthly. The lease concluded in 2091. Considering the 65 years left we estimated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus costs.
An example of a Freehold Enfranchisement decision for a Charing Cross flat is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case was in relation to 1 flat. The unexpired term as at the valuation date was 73.26 years.