Harmondsworth residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises 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 are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 enhanced control over the value of your Harmondsworth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold owner of a 2 bedroom apartment in Harmondsworth on the market with a lease of fraction over 61 years left. Cameron on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2009 we were phoned by Dr J Ricardo who, having moved into a ground floor flat in Harmondsworth in June 1995. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Comparable properties in Harmondsworth with a long lease were worth £250,400. The average amount of ground rent was £65 collected per annum. The lease ended in 2090. Having 64 years unexpired we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 not including costs.
An example of a Freehold Enfranchisement case for a Harmondsworth property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired residue of the current lease was 69 years.