Unfortunately 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 early years due to the loss of value 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 80 years - otherwise a higher amount will be payable. Most leasehold owners in Hornchurch will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Hornchurch with over one hundred years remaining 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 premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Hornchurch lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
During the course of the last few months Andrew, started to get close to the eighty-year mark with the lease on his garden flat in Hornchurch. Having bought his property two decades ago, the lease term was of no interest. Thankfully, he recognised he needed to take action soon on a lease extension. Andrew arranged for a lease extension at the eleventh hour last August. Andrew and the freeholder via the managing agents eventually settled on the final figure of £5,000 . If the lease had dipped below eighty years, the figure would have become more costly by a minimum £925.
Mr Ali Martinez took over the lease of a ground floor flat in Hornchurch in July 2008. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparative flats in Hornchurch with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £65 billed monthly. The lease ended in 2087. Given that there were 62 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
An example of a Lease Extension case for a Hornchurch residence 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 affected 1 flat. The unexpired residue of the current lease was 57.5 years.