Homerton leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Flat owners in Homerton will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Homerton with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Homerton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the freeholder of her two bedroom apartment in Homerton, Natalie initiated the lease extension process just as her lease was approaching the crucial eighty-year deadline. The lease extension was finalised in May 2013. The freeholder’s charges were restricted to under six hundred GBP.
Last Summer we were e-mailed by Ms D Sánchez , who owned a one bedroom apartment in Homerton in June 2002. We are asked if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable homes in Homerton with an extended lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced yearly. The lease elapsed in 2092. Considering the 66 years left we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.
An example of a Freehold Enfranchisement decision for a Homerton property 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 related to 10 flats. The number of years remaining on the existing lease(s) was 71.25 years.