When it comes to long leasehold premises in Bowes Park, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Bowes Park with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has under eighty years remaining, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Bowes Park with over 100 years remaining 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Bowes Park can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bowes Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Arthur, came perilously near to the 80-year threshold with the lease on his ground floor apartment in Bowes Park. Having bought his flat two decades ago, the lease term was of minimal interest. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Arthur was able to extend his lease just ahead of time last August. Arthur and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £1,000.
In 2012 we were phoned by Mr Matthew François who, having owned a basement apartment in Bowes Park in August 2008. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative properties in Bowes Park with a long lease were valued about £200,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2103. Given that there were 78 years remaining we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 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 affected 1 flat. The unexpired lease term was 81.79 years.