Homerton leases on residential deteriorating in value. if your lease has about 90 years left, you should start considering the need for a lease extension. If lease term is under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Homerton will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not be entitled. There are also strict timetables and procedures to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
Lease extensions in Homerton can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 a wealth of experience 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.
18 months ago Seth, came seriously near to the eighty-year threshold with the lease on his garden apartment in Homerton. In buying his home two decades ago, the length of the lease was of little relevance. Luckily, he realised he needed to take action soon on Extending the lease. Seth was able to extend his lease just in the nick of time last January. Seth and the freeholder eventually settled on an amount of £5,500 . If the lease had slipped below eighty years, the amount would have become more costly by a minimum £1,075.
In 2010 we were contacted by Ms Ellie Clarke who, having purchased a newly refurbished apartment in Homerton in June 2012. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparable residencies in Homerton with a long lease were in the region of £232,800. The average amount of ground rent was £45 billed every twelve months. The lease ran out in 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.
An example of a Freehold Enfranchisement decision for a Homerton premises 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 was in relation to 10 flats. The unexpired lease term was 71.25 years.