Mile End leases on domestic properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Mile End will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred 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 equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Mile End,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Mile End valuers.
Off the back of unsuccessful negotiations with the landlord of her studio apartment in Mile End, Ellen initiated the lease extension process as the 80 year threshold was fast nearing. The transaction was concluded in January 2011. The landlord’s fees were kept to an absolute minimum.
Mr B Girard bought a purpose-built flat in Mile End in May 2005. The question was if we could estimate the price could be for a 90 year lease extension. Comparative flats in Mile End with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease expiry date was on 23 August 2103. Given that there were 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
An example of a Freehold Enfranchisement case for a Mile End premises is 26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.