Greenford leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Greenford enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Greenford you would be well advised to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Greenford flat owner with a lease having around 80 years unexpired should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Greenford leasehold, as your property will be more valuable and saleable 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.
Subsequent to unsuccessful discussions with the landlord of her first floor flat in Greenford, Jessica started the lease extension process as the eighty year deadline was quickly approaching. The lease extension was concluded in September 2011. The landlord’s fees were restricted to less than 450 GBP.
Last Summer we were phoned by Mr and Mrs. U Wood , who owned a basement apartment in Greenford in January 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar flats in Greenford with an extended lease were worth £227,800. The average amount of ground rent was £45 collected quarterly. The lease lapsed on 17 February 2091. Having 65 years remaining we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
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 affected 1 flat. The number of years remaining on the existing lease(s) was 58.19 years.