Upminster Bridge leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Upminster Bridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Upminster Bridge you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Upminster Bridge flat owner with a lease having around 80 years remaining should take action to make sure that a lease extension is put in place without delay
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Upminster Bridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful discussions with the freeholder of her first floor flat in Upminster Bridge, Sophie commenced the lease extension process just as her lease was coming close to the crucial 80-year mark. The lease extension was concluded in October 2011. The freeholder’s costs were negotiated to a tad over 700 pounds.
In 2011 we were phoned by Mr and Mrs. F Khan who, having completed a garden flat in Upminster Bridge in October 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Identical residencies in Upminster Bridge with a long lease were valued about £230,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease ended on 21 October 2085. Given that there were 60 years left we calculated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of costs.
An example of a Lease Extension decision for a Upminster Bridge flat is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The remaining number of years on the lease was 57.5 years.