Owning a apartment usually means owning a lease of the property, which has a finite term of years. your lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Harmondsworth. Inevitably, the term of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house has to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible leaseholders in Harmondsworth have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give due consideration before delaying your Harmondsworth lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Harmondsworth with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service gives you increased control over the value of your Harmondsworth 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her two bedroom apartment in Harmondsworth, Rachel initiated the lease extension process as the eighty year deadline was rapidly approaching. The legal work completed in May 2010. The freeholder’s fees were kept to an absolute minimum.
Last November we were e-mailed by Mr and Mrs. O Mercier , who moved into a garden flat in Harmondsworth in April 2004. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Harmondsworth with 100 year plus lease were valued about £280,000. The average amount of ground rent was £45 billed monthly. The lease expired in 2096. Given that there were 70 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Harmondsworth property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.