It’s a harsh truth that a Hornchurch residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Hornchurch property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Hornchurch will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Hornchurch with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hornchurch can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 Hornchurch lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Christmas Austin, started to get close to the 80-year threshold with the lease on his two bedroom flat in Hornchurch. Having purchased his flat 19 years ago, the length of the lease was of minimal importance. Thankfully, it dawned on him that he needed to take action soon on a lease extension. Austin arranged for a lease extension at the eleventh hour last June. Austin and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £1,150.
Dr Georgina Martin owned a ground floor apartment in Hornchurch in July 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable homes in Hornchurch with an extended lease were valued around £216,000. The average amount of ground rent was £60 collected monthly. The lease terminated on 22 April 2084. Considering the 58 years left we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus professional charges.
An example of a Lease Extension case for a Hornchurch flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.