Bethnal Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Bethnal Green residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Bethnal Green you would be well advised to check if your lease has between seventy and 90 years left. There are compelling reasons why a Bethnal Green leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Bethnal Green leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her two bedroom apartment in Bethnal Green, Phoebe initiated the lease extension process as the eighty year mark was swiftly coming. The legal work completed in June 2014. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were called by Mr Lewis Bell , who owned a one bedroom apartment in Bethnal Green in February 2010. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparable premises in Bethnal Green with an extended lease were valued around £189,000. The average ground rent payable was £55 invoiced yearly. The lease termination date was in 2079. Having 53 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
An example of a Lease Extension case for a Bethnal Green property 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 number of years remaining on the existing lease(s) was 72.39 years.