Ilford leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher amount will be payable. Flat owners in Ilford will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain cases you may not be entitled. There are prescribed timetables and formalities to comply with once the process is initiated so it’s sensible to be guided by a lawyer during the process.
Leasehold premises in Ilford with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Ilford leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful correspondence with the landlord of her two bedroom apartment in Ilford, Chelsea commenced the lease extension process just as her lease was coming close to the critical eighty-year deadline. The legal work completed in November 2008. The freeholder’s charges were restricted to under 500 GBP.
In 2013 we were phoned by Mrs A Patel who, having owned a ground floor flat in Ilford in January 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative properties in Ilford with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected yearly. The lease lapsed on 4 April 2097. Considering the 71 years remaining we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
An example of a Lease Extension matter before the tribunal for a Ilford flat 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 remaining number of years on the lease was 61.36 years.