There is no doubt about it a leasehold flat or house in Bowes Park is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Bowes Park will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Bowes Park with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Bowes Park leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Hugo, started to get near to the eighty-year mark with the lease on his garden flat in Bowes Park. In buying his home two decades ago, the unexpired term was of little relevance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Hugo extended the lease just in the nick of time last August. Hugo and the freeholder via the management company subsequently settled on a premium of £5,000 . If he not met the deadline, the sum would have escalated by at least £1,125.
In 2010 we were called by Dr J Vincent who, having took over the lease of a one bedroom flat in Bowes Park in July 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Bowes Park with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 collected quarterly. The lease ran out on 14 June 2104. Given that there were 79 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
An example of a Lease Extension decision for a Bowes Park flat 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 related to 1 flat. The remaining number of years on the lease was 81.79 years.