Homerton leases on domestic deteriorating in value. if your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Flat owners in Homerton will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Homerton with more than one hundred years unexpired 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Coventry Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Lease extensions in Homerton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Homerton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Ben, started to get close to the 80-year threshold with the lease on his basement flat in Homerton. Having bought his property 19 years ago, the length of the lease was of minimal concern. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Ben was able to extend his lease just under the wire last April. Ben and the freeholder subsequently settled on sum of £5,500 . If he not met the deadline, the sum would have gone up by a minimum £1,100.
In 2014 we were approached by Mr and Mrs. H Bell who, having took over the lease of a one bedroom flat in Homerton in September 2007. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar properties in Homerton with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease end date was on 11 May 2079. Having 53 years left we estimated the compensation to the landlord for the lease extension to be between £37,100 and £42,800 exclusive of costs.
An example of a Freehold Enfranchisement matter before the tribunal 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 related to 10 flats. The unexpired term as at the valuation date was 71.25 years.