Chances are that if you own a flat in Harmondsworth you actually own a long leasehold interest over your property
Leasehold premises in Harmondsworth with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Harmondsworth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Harmondsworth valuers.
Following lengthy discussions with the landlord of her studio apartment in Harmondsworth, Kelsey commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction completed in September 2007. The landlord’s costs were kept to an absolute minimum.
Last year we were called by Dr V Campbell , who acquired a one bedroom apartment in Harmondsworth in September 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative properties in Harmondsworth with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed annually. The lease elapsed in 2104. Taking into account 78 years remaining we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
An example of a Freehold Enfranchisement case for a Harmondsworth premises 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 lease term was 69 years.