Chances are that if you own a flat in East London you actually own a long leasehold interest over your property
Leasehold properties in East London with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|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.|
|Leeds Building Society||85 years remaing from the start of the mortgage.|
|TSB||Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.|
|Royal Bank of Scotland||Mortgage term plus 30 years.|
Using our service will provide you better control over the value of your East London leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her purpose-built apartment in East London, Chloe initiated the lease extension process just as the lease was approaching the crucial eighty-year deadline. The transaction completed in March 2007. The freeholder’s charges were kept to an absolute minimum.
Last month we were approach by Mrs Phoebe Hernández , who purchased a studio flat in East London in July 2000. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in East London with a long lease were in the region of £254,200. The mid-range ground rent payable was £60 collected quarterly. The lease ended on 9 November 2074. Having 51 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 not including legals.
An example of a Freehold Enfranchisement case for a East London flat is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case related to 1 flat. The unexpired term as at the valuation date was 73.26 years.