With a residential leasehold premises in Upminster Bridge, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Upminster Bridge with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has fewer than 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
Lease extensions in Upminster Bridge can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Upminster Bridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the landlord of her purpose-built apartment in Upminster Bridge, Yasmin started the lease extension process just as the lease was approaching the all-important eighty-year deadline. The transaction was finalised in April 2005. The freeholder’s fees were negotiated to approximately 700 GBP.
In 2009 we were approached by Dr M Morgan who, having bought a one bedroom apartment in Upminster Bridge in June 2009. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical properties in Upminster Bridge with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced every twelve months. The lease ran out in 2078. Considering the 52 years remaining we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.
An example of a Lease Extension case 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 unexpired lease term was 57.5 years.