The re-sale value of a leasehold property in Englefield Green is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that a lease extension can be addressed well before the eighty year threshold. Leasehold Reform legislation entitles Englefield Green qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Englefield Green with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘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 warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Englefield Green leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jacob, came dangerously close to the eighty-year threshold with the lease on his studio flat in Englefield Green. Having purchased his home twenty years previously, the unexpired term was of no concern. Fortunately, it dawned on him that he needed to take action soon on Extending the lease. Jacob extended the lease just under the wire last June. Jacob and the freeholder subsequently agreed on an amount of £5,500 . If the lease had descended to less than eighty years, the sum would have gone up by a minimum £1,050.
Last August we were contacted by Dr L Sharif , who bought a one bedroom apartment in Englefield Green in March 2006. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical flats in Englefield Green with 100 year plus lease were worth £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 28 February 2088. Having 62 years left we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 not including legals.
Last Autumn we were e-mailed by Mr and Mrs. P Morris , who took over the lease of a newly refurbished flat in Englefield Green in February 2000. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical properties in Englefield Green with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 collected yearly. The lease elapsed in 2099. Having 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.