When it comes to domestic leasehold property in Upminster, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Upminster with a lease drawing near to 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Upminster with in excess of one hundred years left 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service gives you better control over the value of your Upminster leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Lucas, came critically close to the eighty-year threshold with the lease on his one bedroom apartment in Upminster. Having purchased his flat 19 years previously, the unexpired term was of little significance. Luckily, he realised he would soon be paying an escalated premium for Extending the lease. Lucas arranged for a lease extension just in the nick of time last July. Lucas and the freeholder ultimately agreed on sum of £6,000 . If he failed to meet the deadline, the amount would have become more exhorbitant by at least £1,075.
Dr W Bernard bought a garden flat in Upminster in April 2007. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Similar homes in Upminster with an extended lease were valued about £280,000. The average amount of ground rent was £45 collected every twelve months. The lease termination date was in 2095. Considering the 70 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
An example of a Lease Extension decision for a Upminster 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 was in relation to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.