The market value of a leasehold property in Homerton depends on how many years the lease has left to run. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that a lease extension can be concluded in advance of the eighty year cut off point. Statute enables Homerton qualifying lessees to an additional term of ninety years over and above the existing term, at a notional rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Homerton with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. 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 |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Homerton can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Homerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harry owned a conversion flat in Homerton on the market with a lease of fraction over 59 years outstanding. Harry informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Harry to exercise his statutory right. Harry obtained expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were e-mailed by Mr and Mrs. K Richardson who, having owned a first floor apartment in Homerton in January 2008. The question was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Comparable residencies in Homerton with an extended lease were valued about £242,600. The average amount of ground rent was £45 collected every twelve months. The lease ended in 2092. Taking into account 67 years outstanding we calculated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 not including expenses.
An example of a Freehold Enfranchisement case for a Homerton residence is 104 Nightingale Road in May 2009. The Tribunal's Decision is that the premium torbe paid for the enfranchisement in this case is £112,174 This case affected 10 flats. The unexpired lease term was 71.25 years.