On the balance of probabilities where you own a flat in Bethnal Green you actually own a long leasehold interest over your property
Leasehold residencies in Bethnal Green with more than 100 years unexpired on the lease are sometimes 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 upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Bethnal Green leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Leon, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Bethnal Green. Having purchased his flat two decades ago, the unexpired term was of little importance. Luckily, he noticed he would imminently be paying an escalated premium for a lease extension. Leon arranged for a lease extension just under the wire last June. Leon and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If the lease had dropped lower than eighty years, the figure would have increased by a minimum £1,025.
In 2009 we were e-mailed by Mr and Mrs. H Alexander who, having was assigned a lease of a one bedroom apartment in Bethnal Green in July 2009. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable properties in Bethnal Green with a long lease were worth £189,000. The mid-range amount of ground rent was £55 collected annually. The lease ran out on 8 October 2078. Having 53 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
An example of a Lease Extension decision for a Bethnal Green residence 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 related to 2 flats. The unexpired term was 72.39 years.