With a residential leasehold property in Newham, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Newham with a lease approaching 81 years left should seriously think of extending it sooner than later. When a lease has less than eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Newham with in excess of 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Newham,the lease extension lawyers 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 Newham valuers.
After lengthy correspondence with the freeholder of her first floor flat in Newham, Sarah initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work was concluded in May 2008. The landlord’s fees were negotiated to below 500 GBP.
Mrs Jennifer Richardson bought a one bedroom flat in Newham in November 2006. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Newham with a long lease were worth £275,000. The average ground rent payable was £45 billed quarterly. The lease elapsed in 2095. Taking into account 69 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension case for a Newham residence is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case was in relation to 1 flat. The unexpired term was 69.77 years.