The value of Mile End leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in Mile End with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Mile End,the lease extension experts that we work with will always be happy 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.
In recent months Eli, came perilously near to the 80-year mark with the lease on his garden flat in Mile End. Having purchased his home 18 years ago, the lease term was of minimal relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Eli extended the lease just ahead of time in July. Eli and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had dipped to less than 80 years, the figure would have become more costly by at least £975.
Dr Alexander Thomas acquired a garden flat in Mile End in March 2006. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative homes in Mile End with an extended lease were worth £174,200. The average ground rent payable was £55 billed monthly. The lease terminated on 4 June 2076. Given that there were 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
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.