There is no doubt about it a leasehold flat or house in Mile End is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Mile End will qualify for this right; nevertheless a lawyer should be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Mile End with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Mile End leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy negotiations with the freeholder of her purpose-built apartment in Mile End, Naomi initiated the lease extension process just as the lease was coming close to the crucial eighty-year mark. The legal work was finalised in July 2013. The landlord’s fees were restricted to below 500 pounds.
Mr and Mrs. E Scott owned a studio flat in Mile End in October 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Comparative properties in Mile End with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 billed yearly. The lease ended in 2096. Having 71 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Mile End residence 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.