The only way is down when it comes to Greenford lease terms. Greenford properties that have a remaining term lower than eighty years will reduce in market price even faster, and the cost of extending your lease will rise.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| 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 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; |
| Birmingham Midshires | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Greenford leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jasper was the the leasehold proprietor of a conversion flat in Greenford being marketed with a lease of fraction over 59 years outstanding. Jasper on an informal basis approached his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jasper to invoke his statutory right. Jasper obtained expert advice and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. O Ramírez who, having completed a studio apartment in Greenford in February 2009. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative homes in Greenford with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected annually. The lease ended in 2094. Taking into account 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.
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 was in relation to 1 flat. The unexpired term as at the valuation date was 58.19 years.