When it comes to domestic leasehold property in Ilford, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years left. Leasehold owners in Ilford with a lease nearing 81 years left should seriously think of extending it as soon as possible. When a lease has below 80 years remaining, under the current legislation the freeholder is entitled to calculate and levy a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold residencies in Ilford with in excess of one hundred years outstanding 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Ilford 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.
Last October Oliver, came very near to the 80-year threshold with the lease on his two bedroom flat in Ilford. In buying his property two decades ago, the length of the lease was of minimal relevance. As luck would have it, he realised he needed to take action soon on a lease extension. Oliver extended the lease just in the nick of time last September. Oliver and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have become more costly by at least £925.
Last month we were approach by Dr Daisy Green , who bought a one bedroom flat in Ilford in March 2005. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative premises in Ilford with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 26 August 2090. Having 66 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.
An example of a Lease Extension case for a Ilford flat is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case related to 1 flat. The unexpired term was 61.36 years.