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 gets more expensive. Legislation has been in place for sometime now allowing qualifying Upminster Bridge residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Upminster Bridge you would be well advised to see if your lease has between 70 and ninety years left. There are compelling reasons why a Upminster Bridge flat owner with a lease having around 80 years unexpired should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Upminster Bridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Upminster Bridge valuers.
During the course of the last few months Tommy, came precariously close to the eighty-year threshold with the lease on his garden flat in Upminster Bridge. Having purchased his property two decades ago, the unexpired term was of no interest. Thankfully, he recognised he needed to take steps soon on Extending the lease. Tommy extended the lease just under the wire in January. Tommy and the landlord subsequently settled on an amount of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,075.
In 2010 we were contacted by Dr Noah Martínez who, having acquired a ground floor apartment in Upminster Bridge in September 2001. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative flats in Upminster Bridge with an extended lease were worth £166,800. The average ground rent payable was £50 invoiced monthly. The lease elapsed on 22 June 2076. Taking into account 50 years remaining we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 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 was in relation to 1 flat. The unexpired lease term was 57.5 years.