Highams Park residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Highams Park,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Highams Park valuers.
14 months ago Ibrahim, came very close to the 80-year threshold with the lease on his garden apartment in Highams Park. In buying his home two decades ago, the lease term was of little significance. Thankfully, he realised he needed to take steps soon on Extending the lease. Ibrahim was able to extend his lease just under the wire in January. Ibrahim and the freeholder via the management company in the end agreed on an amount of £6,000 . If he had missed the deadline, the amount would have gone up by at least £950.
In 2012 we were e-mailed by Dr Jodie Alexander who, having acquired a ground floor apartment in Highams Park in March 2003. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Highams Park with a long lease were in the region of £166,800. The mid-range amount of ground rent was £50 billed per annum. The lease ended in 2076. Taking into account 50 years unexpired we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus expenses.
An example of a Freehold Enfranchisement decision for a Highams Park property is 48 Greenleaf Road in December 2009. the lessees sought to exercise their right to purchase the freehold from the landlord by way of collective enfranchisement in accordance with the Leasehold Reform Housing and Urban Development Act 1993.The landlord could not be found.A vesting order was granted from the Bow County Court on 10 September 2007 (Claim No: 8BO04141). The Tribunal held that the premium to be paid was £3,850 This case related to 2 flats. The remaining number of years on the lease was 104 years.