With a domestic leasehold property in Upminster Bridge, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Residents in Upminster Bridge with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has less than 80 years left, under the relevant Act the landlord can calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
The conveyancing solicitors that we work with procure 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.
Alfie owned a studio flat in Upminster Bridge on the market with a lease of just over fifty eight years outstanding. Alfie informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Alfie to exercise his statutory right. Alfie obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last year we were phoned by Mr George Carter , who bought a one bedroom apartment in Upminster Bridge in June 1996. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable residencies in Upminster Bridge with 100 year plus lease were valued about £300,000. The average amount of ground rent was £50 invoiced per annum. The lease elapsed on 9 June 2100. Taking into account 75 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
An example of a Lease Extension decision for a Upminster Bridge property 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 affected 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.