Old Ford leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the current lease dips below 80 years - otherwise a higher premium will be payable. Leasehold owners in Old Ford will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Old Ford,the lease extension experts 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 Old Ford valuers.
Last October Samuel, started to get near to the 80-year mark with the lease on his leasehold apartment in Old Ford. Having purchased his flat two decades ago, the unexpired term was of minimal interest. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Samuel arranged for a lease extension just in the nick of time in May. Samuel and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he not met the deadline, the price would have escalated by at least £1,125.
Last Winter we were called by Mr and Mrs. M Lefèvre , who bought a one bedroom apartment in Old Ford in June 2010. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by an additional years. Similar flats in Old Ford with 100 year plus lease were valued around £200,800. The average ground rent payable was £65 invoiced quarterly. The lease concluded on 23 August 2085. Considering the 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 plus costs.
An example of a Freehold Enfranchisement case for a Old Ford 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.