Loughton leases on residential properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Flat owners in Loughton will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In some circumstances you may not qualify. There are also strict timetables and procedures to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Loughton with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you increased control over the value of your Loughton leasehold, as your property will be more valuable and saleable 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.
Subsequent to lengthy discussions with the landlord of her studio apartment in Loughton, Isabel commenced the lease extension process as the eighty year deadline was fast coming. The legal work was finalised in March 2014. The landlord’s charges were negotiated to about four hundred pounds.
Dr Jonathan Hernández bought a studio apartment in Loughton in October 2006. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Loughton with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected per annum. The lease ended on 28 March 2095. Given that there were 69 years outstanding we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Loughton flat is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The remaining number of years on the lease was 69.26 years.