Bowes Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bowes Park residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bowes Park you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Bowes Park flat owner with a lease having around 80 years unexpired should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Bowes Park,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bowes Park valuers.
Eliot owned a conversion apartment in Bowes Park on the market with a lease of fraction over 59 years remaining. Eliot on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Last Spring we were approach by Mr and Mrs. O Bonnet , who owned a one bedroom flat in Bowes Park in February 2003. The question was if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Bowes Park with a long lease were in the region of £198,800. The average ground rent payable was £55 billed monthly. The lease ran out on 28 March 2081. Given that there were 55 years left we calculated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.
An example of a Lease Extension case 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 was in relation to 1 flat. The remaining number of years on the lease was 81.79 years.