The market value of a leasehold property in Mile End depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year mark. Leasehold Reform legislation enables Mile End qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (zero ground rent). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Mile End with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Mile End can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 Mile End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of unsuccessful correspondence with the freeholder of her one bedroom flat in Mile End, Rachel initiated the lease extension process as the eighty year threshold was fast advancing. The legal work was finalised in February 2006. The landlord’s costs were negotiated to less than six hundred pounds.
In 2012 we were called by Mr and Mrs. L Ward who, having purchased a purpose-built apartment in Mile End in August 2003. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Similar residencies in Mile End with 100 year plus lease were worth £257,800. The average ground rent payable was £65 billed every twelve months. The lease came to a finish on 24 August 2091. Having 65 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
An example of a Freehold Enfranchisement decision for a Mile End property 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.