On the balance of probabilities if you own a flat in Homerton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Homerton,the lease extension solicitors 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 Homerton valuers.
Half a year ago Lewis, started to get near to the eighty-year mark with the lease on his studio apartment in Homerton. Having purchased his flat two decades ago, the lease term was of little significance. Thankfully, he noticed he would soon be paying an escalated premium for a lease extension. Lewis arranged for a lease extension at the eleventh hour in April. Lewis and the landlord who owned the flat above ultimately settled on the final figure of £5,000 . If he had missed the deadline, the premium would have become more costly by a minimum £975.
Mr and Mrs. N Cox owned a one bedroom apartment in Homerton in June 2012. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative residencies in Homerton with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 billed per annum. The lease came to a finish in 2085. Having 60 years left we approximated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Homerton premises 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 was in relation to 10 flats. The remaining number of years on the lease was 71.25 years.