The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Ham have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your East Ham lease extension. Putting off the costs now simply increases the amount you will eventually be required to pay to extend the lease.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in East Ham can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring East Ham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Matthew, started to get close to the 80-year mark with the lease on his studio flat in East Ham. In buying his flat 19 years ago, the unexpired term was of no importance. As luck would have it, he realised he would imminently be paying an escalated premium for a lease extension. Matthew was able to extend his lease just ahead of time in March. Matthew and the freeholder subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £850.
Last Autumn we were e-mailed by Ms Caitlin Howard , who moved into a one bedroom apartment in East Ham in July 1995. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar properties in East Ham with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 20 March 2086. Considering the 61 years remaining we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 not including expenses.
An example of a Lease Extension matter before the tribunal for a East Ham flat 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 was in relation to 1 flat. The unexpired lease term was 69.77 years.