Homerton leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Homerton will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
Leasehold properties in Homerton with over one hundred years unexpired on the lease are often 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 reversionary interest unless savings on ground rent and service 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Homerton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Evan, came perilously close to the eighty-year threshold with the lease on his studio apartment in Homerton. Having purchased his property two decades ago, the unexpired term was of little bearing. Thankfully, he recognised he would soon be paying way over the odds for Extending the lease. Evan extended the lease just in the nick of time in June. Evan and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had descended to less than eighty years, the figure would have escalated by a minimum £875.
In 2013 we were called by Mr and Mrs. H Scott who, having took over the lease of a one bedroom flat in Homerton in October 2009. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Homerton with an extended lease were in the region of £260,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded on 6 October 2097. Given that there were 72 years as a residual term we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement case for a Homerton flat is 104 Nightingale Road in May 2009. The Tribunal's Decision is that the premium torbe paid for the enfranchisement in this case is £112,174 This case related to 10 flats. The number of years remaining on the existing lease(s) was 71.25 years.