Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Avery Hill. Inevitably, the period of lease remaining reduces as time goes by. This is often ignored and only becomes a problem when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Avery Hill have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Avery Hill lease extension. Holding off the cost now simply increases the price you will eventually have to pay to extend your lease
It is generally considered that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Avery Hill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Avery Hill valuers.
Edward was the the leasehold proprietor of a studio flat in Avery Hill being sold with a lease of fraction over sixty years left. Edward informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward obtained expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were phoned by Mrs F David who, having acquired a recently refurbished apartment in Avery Hill in March 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Avery Hill with a long lease were in the region of £280,000. The average ground rent payable was £55 billed monthly. The lease ran out in 2104. Taking into account 78 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a Avery Hill flat is 103a Footscray Road in January 2014. The tribunal determines that the premium payable for the extended lease should be £34,500 according to the expert witness valuation calculation This case affected 1 flat.