For those whose Englefield Green flat is held on a long lease, the message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Englefield Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy negotiations with the landlord of her garden flat in Englefield Green, Chloe initiated the lease extension process as the 80 year deadline was swiftly approaching. The transaction was concluded in June 2006. The landlord’s costs were restricted to under 500 GBP.
Last January we were e-mailed by Dr B Torres , who was assigned a lease of a one bedroom flat in Englefield Green in October 2000. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical homes in Englefield Green with an extended lease were worth £173,800. The average amount of ground rent was £60 invoiced annually. The lease ended in 2081. Given that there were 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Last year we were contacted by Dr I Brown , who was assigned a lease of a one bedroom apartment in Englefield Green in September 1996. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar homes in Englefield Green with 100 year plus lease were in the region of £235,200. The average amount of ground rent was £45 collected quarterly. The lease ran out on 27 January 2092. Considering the 66 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.