The only way is down when it comes to Greenford lease terms. Greenford properties that have a residual term less than than eighty years will reduce in value even faster, and the cost to extend your lease will increase.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Greenford can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Greenford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful discussions with the freeholder of her first floor flat in Greenford, Daisy started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension was concluded in March 2007. The landlord’s charges were kept to an absolute minimum.
Last July we were approach by Mr and Mrs. H Nelson , who owned a first floor apartment in Greenford in March 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar properties in Greenford with 100 year plus lease were worth £260,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 13 May 2096. Given that there were 71 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.
An example of a lease Extension matter before the tribunal for a Greenford premises is 25 Beechwood Avenue in November 2012. the Tribunal accordingly determined that the premium for the lease extension should be £24,353. This case was in relation to 1 flat. The unexpired term as at the valuation date was 58.19 years.