Chances are that if you own a flat in Greenford you actually own a long leasehold interest over your property
It is generally considered that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
The lawyers that we work with handle Greenford 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 conveyancer we work with provide it.
In 2014 Charlie, came perilously close to the 80-year threshold with the lease on his first floor apartment in Greenford. In buying his home two decades ago, the unexpired term was of no interest. As luck would have it, it dawned on him that he needed to take steps soon on Extending the lease. Charlie extended the lease just under the wire last June. Charlie and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have become more exhorbitant by a minimum £850.
In 2011 we were approached by Mrs Natalie Campbell who, having owned a one bedroom apartment in Greenford in January 2002. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar premises in Greenford with an extended lease were in the region of £255,000. The average amount of ground rent was £50 billed annually. The lease ended in 2095. Taking into account 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 not including fees.
An example of a lease Extension decision for a Greenford residence is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case was in relation to 1 flat. The remaining number of years on the lease was 58.19 years.