The closer a residential lease in Leyton nears to zero years unexpired, the more it reduces the value of the property. Where the lease has, in excess of 99 years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Leyton will qualify for this right; however a conveyancing solicitor will be able to confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Leyton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leyton valuers.
After unsuccessful negotiations with the freeholder of her leasehold flat in Leyton, Sian initiated the lease extension process just as the lease was approaching the crucial 80-year mark. The lease extension was finalised in June 2005. The landlord’s fees were kept to an absolute minimum.
In 2013 we were phoned by Dr Sian Gunderson who, having was assigned a lease of a studio flat in Leyton in May 2007. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative properties in Leyton with a long lease were worth £257,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease finished in 2090. Considering the 65 years left we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Leyton premises is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case was in relation to 2 flats. The unexpired lease term was 72.02 years.