Upminster residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold residencies in Upminster with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Coventry Building Society | 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Upminster leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jamie, started to get near to the eighty-year mark with the lease on his ground floor flat in Upminster. Having bought his home twenty years previously, the lease term was of minimal concern. Luckily, he realised he would soon be paying way over the odds for Extending the lease. Jamie arranged for a lease extension at the eleventh hour last July. Jamie and the landlord subsequently settled on the final figure of £5,500 . If he not met the deadline, the price would have become more exhorbitant by a minimum £1,125.
In 2012 we were phoned by Mr and Mrs. I Gunderson who, having purchased a purpose-built apartment in Upminster in September 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative residencies in Upminster with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed on 5 January 2076. Given that there were 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.
An example of a Lease Extension matter before the tribunal for a Upminster 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 unexpired residue of the current lease was 57.5 years.