On the balance of probabilities where you own a flat in Buckhurst Hill you actually own a long leasehold interest over your property
Leasehold properties in Buckhurst Hill with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Buckhurst Hill,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 in-depth market knowledge and the close ties they enjoy with Buckhurst Hill valuers.
In recent months Noah, started to get near to the 80-year mark with the lease on his leasehold apartment in Buckhurst Hill. Having bought his flat two decades ago, the lease term was of no significance. Fortunately, he became aware that he needed to take steps soon on a lease extension. Noah extended the lease just under the wire last September. Noah and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £1,075.
Mr Rory Reed completed a one bedroom flat in Buckhurst Hill in November 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar flats in Buckhurst Hill with an extended lease were valued around £227,800. The mid-range ground rent payable was £45 invoiced annually. The lease ran out in 2091. Taking into account 65 years outstanding we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.
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 related to 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.