As the the remaining lease term of a Bethnal Green residential lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 125 years remaining then this decrease may be negligible that being said there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner than later. Most flat owners in Bethnal Green will qualify for this right; however a lawyer will be able to confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| Lloyds TSB Scotland | Mortgage term plus 30 years subject to an overall minimum term of 70 years |
| National Westminster Bank | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Bethnal Green 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 lawyer we work with provide it.
Following protracted discussions with the landlord of her garden apartment in Bethnal Green, Amber started the lease extension process as the 80 year deadline was quickly advancing. The legal work completed in October 2012. The freeholder’s charges were kept to an absolute minimum.
Last Winter we were called by Ms Kelsey Roberts , who completed a purpose-built apartment in Bethnal Green in March 1997. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative properties in Bethnal Green with a long lease were valued around £174,200. The average ground rent payable was £55 billed annually. The lease concluded on 25 June 2072. Considering the 51 years outstanding we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
An example of a Lease Extension case for a Bethnal Green flat 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 was in relation to 2 flats. The unexpired lease term was 72.39 years.