With a domestic leasehold property in Greenford, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Residents in Greenford with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once the lease term has under eighty years left, under the current Act the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Greenford with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Greenford leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the landlord of her two bedroom flat in Greenford, Kayleigh initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The legal work was finalised in June 2012. The landlord’s charges were kept to an absolute minimum.
In 2012 we were phoned by Dr S Jones who, having owned a purpose-built flat in Greenford in July 2010. The question was if we could approximate the premium could be for a 90 year lease extension. Similar homes in Greenford with an extended lease were worth £261,600. The average amount of ground rent was £60 billed every twelve months. The lease expired on 18 July 2077. Given that there were 52 years left we estimated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus costs.
An example of a lease Extension matter before the tribunal 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 affected 1 flat. The unexpired term as at the valuation date was 58.19 years.