Limehouse leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Limehouse enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Limehouse you would be well advised to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Limehouse flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Limehouse with more than one hundred years outstanding 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Limehouse leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold owner of a studio apartment in Limehouse being marketed with a lease of just over fifty eight years outstanding. Jacob on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert advice and secured an acceptable deal informally and ending up with a market value flat.
Last Summer we were called by Dr Max Gunderson , who owned a ground floor flat in Limehouse in November 2009. The question was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Limehouse with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced per annum. The lease concluded in 2089. Considering the 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 plus fees.
An example of a Freehold Enfranchisement decision for a Limehouse premises is 26 Rhondda Grove in June 2009. The net price payable by the leaseholders as determined by the Tribunal was £3,015.13. This comprised £11,300 premium for the reversion less £8,284.87 costs as ordered by the County Court.