Greenford leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Leasehold owners in Greenford will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Greenford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Greenford valuers.
Half a year ago Ryan, came perilously near to the 80-year mark with the lease on his first floor flat in Greenford. In buying his property two decades ago, the lease term was of little bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Ryan extended the lease just under the wire in August. Ryan and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,000.
Mr and Mrs. C Mason acquired a studio apartment in Greenford in March 2000. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Similar homes in Greenford with 100 year plus lease were valued around £173,800. The mid-range amount of ground rent was £60 collected yearly. The lease ended in 2081. Given that there were 55 years outstanding we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
An example of a lease Extension matter before the tribunal for a Greenford property is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case related to 1 flat. The unexpired term was 58.19 years.