It’s a harsh certainty that a Goodmayes residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Goodmayes property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Goodmayes will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold residencies in Goodmayes with in excess of one hundred years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Goodmayes,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Goodmayes valuers.
Two years ago Toby, came precariously close to the 80-year mark with the lease on his garden flat in Goodmayes. In buying his flat 19 years previously, the unexpired term was of little interest. Thankfully, it dawned on him that he would soon be paying way over the odds for Extending the lease. Toby was able to extend his lease just under the wire in April. Toby and the landlord subsequently settled on sum of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £925.
Last Winter we were e-mailed by Mrs Niamh White , who owned a recently refurbished flat in Goodmayes in July 1995. We are asked if we could approximate the price could be to extend the lease by ninety years. Identical residencies in Goodmayes with a long lease were in the region of £200,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2102. Given that there were 77 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.
An example of a Lease Extension decision for a Goodmayes premises 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 related to 1 flat. The number of years remaining on the existing lease(s) was 61.36 years.