Canning Town leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Canning Town enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Canning Town you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Canning Town flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 75 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. |
The conveyancing solicitors that we work with procure Canning Town lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
14 months ago Elijah, started to get near to the 80-year mark with the lease on his one bedroom apartment in Canning Town. In buying his property 18 years previously, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on a lease extension. Elijah was able to extend his lease just ahead of time last June. Elijah and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £900.
In 2009 we were called by Mr Felix Petit who, having purchased a recently refurbished flat in Canning Town in July 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Canning Town with 100 year plus lease were valued about £255,000. The average amount of ground rent was £50 invoiced quarterly. The lease ended on 14 July 2097. Taking into account 71 years left we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension decision 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 related to 1 flat. The remaining number of years on the lease was 69.77 years.