Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Heathrow. Clearly, the period of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Eligible long lease owners in Heathrow have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give due attention before putting off your Heathrow lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Lease extensions in Heathrow can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in this area.
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.
Muhammad owned a 2 bedroom flat in Heathrow being marketed with a lease of just over sixty years left. Muhammad informally contacted his landlord a well known Bristol-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 on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Dr Charlie Evans completed a one bedroom flat in Heathrow in July 2004. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar premises in Heathrow with a long lease were worth £210,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed on 27 November 2106. Given that there were 80 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
An example of a Lease Extension matter before the tribunal for a Heathrow flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The remaining number of years on the lease was 82.93 years.