Upminster leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Upminster will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Upminster with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| 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. |
Lease extensions in Upminster can be a difficult process. We recommend you obtain professional help from a conveyancer 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 dealing with Upminster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Thomas owned a studio apartment in Upminster being sold with a lease of fraction over 59 years unexpired. Thomas on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. M López purchased a one bedroom flat in Upminster in November 2000. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Upminster with 100 year plus lease were valued about £295,000. The average amount of ground rent was £45 collected monthly. The lease came to a finish on 1 August 2099. Given that there were 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of 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 affected 1 flat. The unexpired lease term was 57.5 years.