Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Upminster. Inevitably, the period of lease remaining reduces as time goes by. This may slip by relatively unnoticed when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Upminster have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. Do give careful consideration before putting off your Upminster lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
Leasehold premises in Upminster with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
Birmingham Midshires | Minimum 70 years from the date 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. |
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. |
Using our service gives you better control over the value of your Upminster leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Edward, came seriously close to the 80-year mark with the lease on his basement apartment in Upminster. Having purchased his flat two decades ago, the lease term was of little concern. Thankfully, he realised he needed to take action soon on a lease extension. Edward was able to extend his lease just under the wire in June. Edward and the freeholder subsequently agreed on an amount of £5,000 . If the lease had dipped lower than eighty years, the sum would have gone up by a minimum £900.
Mr and Mrs. B Lefèvre took over the lease of a studio apartment in Upminster in April 2011. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Upminster with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced yearly. The lease expired on 21 August 2093. Taking into account 69 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
An example of a Lease Extension case 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 related to 1 flat. The remaining number of years on the lease was 57.5 years.