With a long leasehold premises in Goodmayes, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably once there are less than 80 years remaining. Anyone in Goodmayes with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has below 80 years outstanding, under the current statute the landlord is entitled to calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Goodmayes can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in lease extensions.
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 Goodmayes lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tyler was the the leasehold proprietor of a conversion apartment in Goodmayes being sold with a lease of fraction over fifty eight years left. Tyler informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tyler to exercise his statutory right. Tyler procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were phoned by Dr Rory Brooks who, having acquired a newly refurbished apartment in Goodmayes in May 1999. The question was if we could approximate the price would be to prolong the lease by an additional years. Similar premises in Goodmayes with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 invoiced yearly. The lease lapsed in 2096. Taking into account 70 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
An example of a Lease Extension case for a Goodmayes property 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 residue of the current lease was 61.36 years.