Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Upminster Bridge. Clearly, the period of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Upminster Bridge have the legal entitlement to extend the lease for a further 90 years under statute. You should give due deliberation before delaying your Upminster Bridge lease extension. Putting off the cost now likely increases the price you will eventually incur to extend your lease
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Upminster Bridge can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Jack owned a high value apartment in Upminster Bridge on the market with a lease of just over sixty years remaining. Jack informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Jack to invoke his statutory right. Jack obtained expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. O Ricardo owned a one bedroom apartment in Upminster Bridge in May 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical homes in Upminster Bridge with a long lease were in the region of £181,600. The average ground rent payable was £55 invoiced monthly. The lease lapsed in 2077. Considering the 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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.