There is no doubt about it a leasehold flat or house in East Ham is a wasting asset as a result of the shortening lease. If the residual term has, in excess of one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease sooner rather than later. Many flat owners in East Ham will meet the qualifying criteria; that being said a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in East Ham with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your East Ham leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Alex, started to get near to the 80-year threshold with the lease on his basement flat in East Ham. In buying his flat two decades ago, the length of the lease was of little relevance. Fortunately, he realised he needed to take steps soon on a lease extension. Alex was able to extend his lease at the eleventh hour last March. Alex and the freeholder subsequently agreed on a premium of £6,000 . If he not met the deadline, the price would have escalated by a minimum £950.
Last year we were e-mailed by Ms Olivia Adams , who was assigned a lease of a studio apartment in East Ham in April 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar homes in East Ham with a long lease were worth £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2096. Given that there were 70 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.
An example of a Lease Extension case for a East Ham 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 was in relation to 1 flat. The unexpired lease term was 69.77 years.