With a residential leasehold property in Greenford, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years left. Residents in Greenford with a lease nearing 81 years left should seriously consider extending it sooner than later. Once the lease term has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and levy a greater premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
Retaining our service will provide you enhanced control over the value of your Greenford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Liam, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Greenford. In buying his home two decades ago, the unexpired term was of no concern. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. Liam extended the lease just in the nick of time last July. Liam and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If he not met the deadline, the sum would have increased by a minimum £850.
Last Autumn we were approach by Mr and Mrs. J Young , who bought a basement flat in Greenford in August 2010. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Similar residencies in Greenford with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed yearly. The lease concluded on 25 September 2077. Taking into account 51 years left we calculated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.
An example of a lease Extension case 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 number of years remaining on the existing lease(s) was 58.19 years.