Upminster leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Upminster enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Upminster you really ought to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Upminster flat owner with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Upminster with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancers that we work with procure Upminster lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Caleb was the the leasehold proprietor of a 2 bedroom flat in Upminster being marketed with a lease of fraction over fifty eight years outstanding. Caleb on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb obtained expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mrs Rosie Sharif purchased a purpose-built apartment in Upminster in January 2007. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Comparative premises in Upminster with an extended lease were worth £248,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended on 27 January 2089. Having 63 years left we approximated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including costs.
An example of a Lease Extension matter before the tribunal for a Upminster residence 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 residue of the current lease was 57.5 years.