The market value of a leasehold property in Ilford is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Statute entitles Ilford qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ilford with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Ilford leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Joshua, started to get near to the eighty-year threshold with the lease on his basement apartment in Ilford. In buying his property two decades ago, the lease term was of minimal relevance. Fortunately, he became aware that he would soon be paying an inflated amount for a lease extension. Joshua was able to extend his lease just under the wire in July. Joshua and the landlord in the end settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have gone up by a minimum £925.
Last Autumn we were approach by Ms Ashleigh Davies , who purchased a one bedroom flat in Ilford in June 2009. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Similar residencies in Ilford with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 invoiced monthly. The lease expiry date was on 10 October 2105. Taking into account 80 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.
An example of a Lease Extension matter before the tribunal for a Ilford property is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term as at the valuation date was 61.36 years.