The market value of Gidea Park leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Gidea Park leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Freddie, came precariously near to the 80-year threshold with the lease on his garden flat in Gidea Park. In buying his home two decades ago, the length of the lease was of minimal interest. Fortunately, he noticed he needed to take action soon on a lease extension. Freddie was able to extend his lease just in the nick of time last July. Freddie and the freeholder via the management company in the end agreed on a premium of £5,500 . If the lease had gone to less than eighty years, the figure would have increased by at least £1,100.
In 2014 we were phoned by Mr and Mrs. Y Roberts who, having owned a first floor flat in Gidea Park in April 1996. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical residencies in Gidea Park with 100 year plus lease were worth £265,000. The average ground rent payable was £50 billed every twelve months. The lease expired in 2099. Given that there were 74 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
An example of a Lease Extension matter before the tribunal for a Gidea Park premises 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 was in relation to 1 flat. The unexpired term was 57.5 years.