The market value of Greenford 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 remaining term is less than 80 years
Leasehold premises in Greenford with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Greenford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
14 months ago Kai, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Greenford. In buying his property two decades ago, the lease term was of minimal significance. Thankfully, he recognised he needed to take action soon on a lease extension. Kai arranged for a lease extension just under the wire last May. Kai and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If the lease had fallen below eighty years, the figure would have increased by a minimum £1,150.
In 2014 we were contacted by Mr and Mrs. D Alexander who, having acquired a one bedroom flat in Greenford in August 2001. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparable flats in Greenford with an extended lease were in the region of £183,600. The average amount of ground rent was £65 invoiced yearly. The lease lapsed on 8 June 2083. Taking into account 57 years left we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
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 unexpired lease term was 58.19 years.