With a residential leasehold property in Havering, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Residents in Havering with a lease nearing 81 years unexpired should seriously consider extending it without delay. When the lease term has below 80 years outstanding, under the relevant legislation the landlord can calculate and demand a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Havering with over 100 years unexpired 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 home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Birmingham Midshires | 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Havering leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Seth owned a conversion flat in Havering on the market with a lease of fraction over sixty years outstanding. Seth on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Seth to exercise his statutory right. Seth obtained expert advice and secured an acceptable resolution informally and readily saleable.
In 2009 we were called by Mr and Mrs. T David who, having purchased a one bedroom apartment in Havering in February 1998. The dilemma was if we could estimate the price would be to prolong the lease by an additional years. Similar homes in Havering with a long lease were valued around £260,200. The average amount of ground rent was £65 billed annually. The lease end date was on 15 July 2091. Considering the 66 years unexpired we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.
An example of a Lease Extension matter before the tribunal for a Havering premises 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 affected 1 flat. The unexpired term was 57.5 years.