As the length of the unexpired term of a Bowes Park domestic lease lessens so does its value and therefore the value of your property. Where the lease has, more than 100 years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Bowes Park will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bowes Park with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Bowes Park,the lease extension solicitors 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 Bowes Park valuers.
Last year Alex, started to get close to the 80-year mark with the lease on his purpose- built apartment in Bowes Park. In buying his home twenty years previously, the unexpired term was of minimal concern. Thankfully, he realised he would soon be paying an inflated amount for a lease extension. Alex was able to extend his lease at the eleventh hour last August. Alex and the freeholder eventually agreed on sum of £6,000 . If the lease had slipped to less than 80 years, the sum would have increased by a minimum £925.
Mr V Morgan moved into a ground floor apartment in Bowes Park in November 2009. We are asked if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Bowes Park with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish in 2091. Taking into account 66 years as a residual term we approximated the premium to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.
An example of a Lease Extension decision for a Bowes Park premises is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The number of years remaining on the existing lease(s) was 81.79 years.