Englefield Green leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for a lease extension to take place before the term of the existing lease drops under 80 years - otherwise a higher premium will be due. Flat owners in Englefield Green will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold premises in Englefield Green with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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; |
| 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. |
| 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. |
Lease extensions in Englefield Green can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Englefield Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Caleb, started to get close to the eighty-year threshold with the lease on his ground floor flat in Englefield Green. In buying his home two decades ago, the lease term was of minimal relevance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Caleb extended the lease just under the wire last July. Caleb and the freeholder subsequently agreed on a premium of £5,000 . If the lease had slid below 80 years, the figure would have become more exhorbitant by at least £950.
In 2009 we were approached by Mr D Pérez who, having moved into a basement flat in Englefield Green in July 2004. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparative residencies in Englefield Green with a long lease were worth £275,000. The average ground rent payable was £55 billed monthly. The lease concluded on 2 February 2102. Given that there were 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2011 we were called by Mr F García who, having took over the lease of a recently refurbished flat in Englefield Green in January 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparable homes in Englefield Green with an extended lease were worth £176,200. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2082. Having 56 years as a residual term we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus professional charges.