When it comes to residential leasehold property in Chadwell Heath, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years left. Leasehold owners in Chadwell Heath with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Chadwell Heath with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
The lawyers that we work with undertake Chadwell Heath 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 lawyer we work with provide it.
After unsuccessful discussions with the freeholder of her studio flat in Chadwell Heath, Jessica initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The lease extension was finalised in April 2009. The freeholder’s fees were restricted to below 700 pounds.
Last Spring we were approach by Mr H Torres , who moved into a one bedroom flat in Chadwell Heath in November 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar homes in Chadwell Heath with a long lease were valued about £191,400. The average amount of ground rent was £55 invoiced yearly. The lease ran out on 24 April 2079. Taking into account 54 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 plus expenses.
An example of a Lease Extension case for a Chadwell Heath residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case was in relation to 1 flat. The unexpired lease term was 61.36 years.