Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bowes Park. Clearly, the term of lease left shortens over time. This is often overlooked and only becomes a problem when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Qualifying leaseholders in Bowes Park have the right to extend the lease for an additional 90 years under Leasehold Reform legislation. You should give careful attention before putting off your Bowes Park lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Bowes Park with more than 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Retaining our service gives you increased control over the value of your Bowes Park leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Alfie, came perilously close to the 80-year threshold with the lease on his one bedroom apartment in Bowes Park. In buying his home two decades ago, the lease term was of no concern. As luck would have it, it dawned on him that he needed to take action soon on a lease extension. Alfie arranged for a lease extension just under the wire last September. Alfie and the landlord in the end settled on an amount of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,100.
In 2014 we were approached by Ms Francesca Brooks who, having owned a first floor flat in Bowes Park in April 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparable flats in Bowes Park with a long lease were worth £275,000. The mid-range ground rent payable was £45 billed yearly. The lease terminated in 2095. Given that there were 69 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 unexpired residue of the current lease was 81.79 years.