On the balance of probabilities if you own a flat in Bowes Park you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 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 remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bowes Park,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bowes Park valuers.
During the course of the last few months Jake, started to get close to the eighty-year threshold with the lease on his ground floor flat in Bowes Park. In buying his home 19 years previously, the unexpired term was of minimal significance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Jake arranged for a lease extension at the eleventh hour last August. Jake and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If the lease had slid to less than eighty years, the figure would have become more costly by at least £1,075.
In 2011 we were phoned by Ms K André who, having bought a purpose-built flat in Bowes Park in June 2011. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparative premises in Bowes Park with a long lease were worth £275,000. The mid-range amount of ground rent was £65 invoiced per annum. The lease elapsed in 2093. Considering the 68 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
An example of a Lease Extension case for a Bowes Park residence 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 affected 1 flat. The remaining number of years on the lease was 81.79 years.