Goodmayes leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Goodmayes will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Goodmayes with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | 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. |
| 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 |
| Yorkshire 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. |
The lawyers that we work with undertake Goodmayes lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last October Omar, started to get close to the 80-year mark with the lease on his two bedroom apartment in Goodmayes. In buying his flat 18 years ago, the unexpired term was of little importance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Omar was able to extend his lease just under the wire in June. Omar and the landlord ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by at least £1,075.
In 2009 we were phoned by Mr and Mrs. M Hill who, having acquired a first floor flat in Goodmayes in January 1998. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable homes in Goodmayes with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected every twelve months. The lease concluded on 3 November 2081. Considering the 55 years remaining we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.
An example of a Lease Extension matter before the tribunal for a Goodmayes flat 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 remaining number of years on the lease was 61.36 years.