Canning Town leases on domestic properties are gradually losing value. Where your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher amount will be payable. Flat owners in Canning Town will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain circumstances you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Canning Town,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Canning Town valuers.
Following protracted correspondence with the freeholder of her basement flat in Canning Town, Freya initiated the lease extension process just as the lease was coming close to the critical eighty-year deadline. The transaction was finalised in May 2014. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were called by Ms V Evans , who completed a purpose-built apartment in Canning Town in July 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical premises in Canning Town with a long lease were valued around £225,400. The mid-range amount of ground rent was £45 invoiced annually. The lease ran out in 2089. Taking into account 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Canning Town premises 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 was 69.77 years.