There is no doubt about it a leasehold flat or house in Bethnal Green is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 99 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Bethnal Green will meet the qualifying criteria; that being said a conveyancer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Bethnal Green with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Royal Bank of Scotland |
Lease extensions in Bethnal Green can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Bethnal Green lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison was the the leasehold proprietor of a high value apartment in Bethnal Green being sold with a lease of fraction over 72 years outstanding. Harrison informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to exercise his statutory right. Harrison procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Dr Ollie Martínez acquired a studio flat in Bethnal Green in February 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Identical flats in Bethnal Green with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced per annum. The lease ran out on 26 January 2094. Taking into account 68 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus legals.
An example of a Lease Extension matter before the tribunal for a Bethnal Green premises is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The unexpired residue of the current lease was 72.39 years.