When it comes to domestic leasehold premises in Havering, you are in fact renting it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are fewer than eighty years left. Anyone in Havering with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current Act the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Havering with more than one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Irrespective of whether you are a tenant or a freeholder in Havering,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Havering valuers.
Off the back of unsuccessful discussions with the landlord of her leasehold flat in Havering, Bethany initiated the lease extension process just as her lease was approaching the critical 80-year threshold. The lease extension was finalised in September 2012. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. Y Ramírez , who took over the lease of a newly refurbished apartment in Havering in November 2000. The question was if we could estimate the price could be for a ninety year lease extension. Comparative homes in Havering with 100 year plus lease were worth £267,600. The average amount of ground rent was £65 invoiced yearly. The lease terminated in 2093. Given that there were 67 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including professional charges.
An example of a Lease Extension case for a Havering property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case related to 1 flat. The number of years remaining on the existing lease(s) was 57.5 years.