Canning Town leases on residential properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you start paying an additional element called marriage value. Leasehold owners in Canning Town will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with more than one hundred years remaining 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 decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Canning Town valuers.
Trailing lengthy correspondence with the landlord of her first floor apartment in Canning Town, Ellie initiated the lease extension process as the 80 year threshold was quickly coming. The transaction was concluded in February 2006. The landlord’s costs were negotiated to a tad over 450 pounds.
In 2010 we were contacted by Mr and Mrs. O Bonnet who, having purchased a basement flat in Canning Town in January 2008. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Canning Town with 100 year plus lease were worth £227,800. The average ground rent payable was £45 collected quarterly. The lease terminated on 13 November 2090. Given that there were 65 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of legals.
An example of a Lease Extension decision for a Canning Town residence 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.