Havering leases on domestic deteriorating in value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Havering will usually qualify for a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are also strict timetables and formalities to follow once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Havering with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better 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.
Last October Leon, started to get near to the eighty-year mark with the lease on his ground floor flat in Havering. In buying his property two decades ago, the unexpired term was of no concern. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Leon arranged for a lease extension just under the wire last May. Leon and the freeholder eventually agreed on the final figure of £5,000 . If the lease had gone lower than eighty years, the premium would have increased by at least £1,025.
Last Summer we were called by Mr F Young , who owned a first floor apartment in Havering in April 1995. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative residencies in Havering with a long lease were worth £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease came to a finish on 13 November 2105. Taking into account 79 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including fees.
An example of a Lease Extension matter before the tribunal for a Havering flat 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 was in relation to 1 flat. The unexpired lease term was 57.5 years.