Upminster leases on residential deteriorating in value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher amount will be due. Flat owners in Upminster will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Upminster with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Upminster can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Archie, came seriously close to the 80-year mark with the lease on his purpose- built flat in Upminster. In buying his property 18 years previously, the unexpired term was of little relevance. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Archie was able to extend his lease just in the nick of time last May. Archie and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the figure would have gone up by at least £1,075.
Last Spring we were phoned by Ms N Adams , who moved into a one bedroom flat in Upminster in November 2012. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Similar residencies in Upminster with an extended lease were in the region of £290,000. The average ground rent payable was £45 collected monthly. The lease finished in 2099. Given that there were 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
An example of a Lease Extension case for a Upminster 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 term was 57.5 years.