With a residential leasehold premises in Mile End, you are actually purchasing an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Anyone in Mile End with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has less than eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Mile End,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Mile End valuers.
Leo was the the leasehold proprietor of a high value apartment in Mile End on the market with a lease of a little over 72 years unexpired. Leo informally spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo procured expert advice and secured satisfactory resolution informally and sell the flat.
Last September we were contacted by Mr and Mrs. T Leroy , who purchased a studio apartment in Mile End in April 1997. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Similar premises in Mile End with 100 year plus lease were worth £189,000. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish in 2079. Considering the 53 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 not including fees.
An example of a Freehold Enfranchisement decision 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.