The only way is down when it comes to Canning Town lease terms. Canning Town leaseholds that have a lease term shorter than eighty years will drop in market price even faster, and the cost of extending your lease will go up.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Canning Town,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Canning Town valuers.
Last year Ben, came dangerously near to the 80-year threshold with the lease on his purpose- built apartment in Canning Town. Having bought his property 19 years ago, the lease term was of no importance. Fortunately, he noticed he needed to take steps soon on Extending the lease. Ben extended the lease just under the wire last July. Ben and the freeholder ultimately agreed on an amount of £5,000 . If he not met the deadline, the premium would have escalated by a minimum £850.
In 2013 we were called by Mr and Mrs. G Moreau who, having acquired a one bedroom flat in Canning Town in January 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar flats in Canning Town with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was in 2097. Given that there were 72 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
An example of a Lease Extension matter before the tribunal for a Canning Town property is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The unexpired term as at the valuation date was 69.77 years.