Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Gidea Park. Clearly, the period of lease left shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Gidea Park have the legal entitlement to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due attention before delaying your Gidea Park lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Gidea Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the freeholder of her studio flat in Gidea Park, Sophie started the lease extension process as the eighty year threshold was fast approaching. The legal work completed in January 2005. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were e-mailed by Ms O Díaz , who moved into a purpose-built apartment in Gidea Park in September 1995. We are asked if we could estimate the price would likely be to prolong the lease by 90 years. Comparable homes in Gidea Park with 100 year plus lease were valued about £168,800. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2080. Given that there were 55 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
An example of a Lease Extension decision for a Gidea Park property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The unexpired lease term was 57.5 years.