When it comes to domestic leasehold property in Buckhurst Hill, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than 80 years left. Anyone in Buckhurst Hill with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has less than eighty years left, under the relevant Act the freeholder can calculate and charge a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Buckhurst Hill,the lease extension experts 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 Buckhurst Hill valuers.
Muhammad was the the leasehold owner of a high value flat in Buckhurst Hill being marketed with a lease of a few days over sixty years unexpired. Muhammad on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. E Stewart , who purchased a basement flat in Buckhurst Hill in June 2005. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Identical residencies in Buckhurst Hill with a long lease were in the region of £183,600. The mid-range ground rent payable was £65 collected per annum. The lease ran out on 25 October 2083. Considering the 57 years outstanding we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
An example of a Freehold Enfranchisement case for a Buckhurst Hill premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The unexpired term as at the valuation date was 69.26 years.