Upminster Bridge leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. Leasehold owners in Upminster Bridge will mostly be legally entitled to a lease extension; however a solicitor will confirm if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure professional help from a conveyancer and valuer with experience in this area.
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 dealing with 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.
Theo owned a 2 bedroom flat in Upminster Bridge being sold with a lease of a little over 59 years remaining. Theo informally approached his freeholder being a well known London-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 on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Theo to invoke his statutory right. Theo procured expert advice and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr S Sharif acquired a first floor flat in Upminster Bridge in August 1998. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparative premises in Upminster Bridge with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 billed quarterly. The lease terminated on 27 May 2100. Taking into account 74 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension matter before the tribunal for a Upminster Bridge premises 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 unexpired residue of the current lease was 57.5 years.