The only way is down when it comes to Heathrow lease terms. Heathrow leaseholds that have a lease term shorter than 80 years will drop in market price even faster, and the cost to extend your lease will go up.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Heathrow can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Heathrow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the landlord of her first floor flat in Heathrow, Lydia started the lease extension process as the 80 year deadline was quickly nearing. The lease extension was finalised in April 2005. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. W Díaz bought a basement apartment in Heathrow in November 2010. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Heathrow with a long lease were worth £174,200. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended in 2076. Considering the 51 years unexpired we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Heathrow residence is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired lease term was 82.93 years.