Harmondsworth leases on residential deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease dips below eighty years - otherwise a higher premium will be due. Flat owners in Harmondsworth will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In certain cases you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Harmondsworth with more than one hundred years unexpired 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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; |
| 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. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Harmondsworth leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley owned a conversion flat in Harmondsworth being sold with a lease of a few days over fifty eight years unexpired. Finley on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last Winter we were contacted by Mr and Mrs. P Moreau , who bought a one bedroom apartment in Harmondsworth in March 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Similar residencies in Harmondsworth with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected annually. The lease elapsed in 2081. Given that there were 55 years outstanding we calculated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal 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.