Chances are that if you own a flat in Gidea Park you actually own a long leasehold interest over your property
Leasehold properties in Gidea Park with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Gidea Park,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 experience and the close ties they enjoy with Gidea Park valuers.
Two years ago Zachary, started to get near to the eighty-year mark with the lease on his first floor apartment in Gidea Park. In buying his home two decades ago, the length of the lease was of little relevance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Zachary extended the lease at the eleventh hour last May. Zachary and the freeholder via the management company ultimately settled on the final figure of £5,500 . If the lease had dropped below 80 years, the premium would have increased by at least £925.
Dr V Ward moved into a studio flat in Gidea Park in February 2010. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Gidea Park with an extended lease were valued around £255,000. The average amount of ground rent was £50 billed every twelve months. The lease terminated in 2097. Taking into account 71 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension case 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 term as at the valuation date was 57.5 years.