The only way is down when it comes to Goodmayes lease terms. Goodmayes flats that have a remaining term shorter than 80 years will reduce in market price even faster, and the cost of extending your lease will increase.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
The conveyancing solicitors 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.
Two years ago Arthur, came seriously near to the 80-year mark with the lease on his first floor flat in Goodmayes. Having bought his property 18 years ago, the lease term was of minimal importance. by good luck, he realised he needed to take action soon on a lease extension. Arthur extended the lease just ahead of time last March. Arthur and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £1,075.
In 2013 we were approached by Mr and Mrs. P Parker who, having took over the lease of a newly refurbished flat in Goodmayes in June 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Goodmayes with a long lease were in the region of £216,000. The average ground rent payable was £60 billed per annum. The lease ended in 2083. Taking into account 58 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 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 term as at the valuation date was 61.36 years.