The market value of a leasehold property in Heathrow is impacted by how long the lease has remaining. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that all matters can be finalised prior to the 80 year threshold. Leasehold Reform legislation entitles Heathrow qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Engaging our service will provide you enhanced control over the value of your Heathrow leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Hunter, came perilously near to the eighty-year mark with the lease on his basement apartment in Heathrow. Having purchased his flat 19 years ago, the length of the lease was of no bearing. by good luck, he became aware that he needed to take steps soon on a lease extension. Hunter extended the lease just under the wire in April. Hunter and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he not met the deadline, the sum would have become more exhorbitant by at least £950.
In 2014 we were phoned by Mr and Mrs. I Díaz who, having was assigned a lease of a studio flat in Heathrow in June 2000. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Heathrow with an extended lease were worth £290,000. The average ground rent payable was £45 collected every twelve months. The lease expired on 20 January 2099. Taking into account 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Lease Extension decision for a Heathrow property 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 unexpired lease term was 82.93 years.