Limehouse leases on residential properties are gradually losing value. Where your lease has approximately 90 years remaining, you should start thinking about a lease extension. An important point to note is that it is desirable for the lease extension to be in place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Limehouse will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to comply with once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Limehouse can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Limehouse lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex was the the leasehold proprietor of a conversion flat in Limehouse being marketed with a lease of a few days over 59 years remaining. Alex informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Ms Alice Wright acquired a one bedroom flat in Limehouse in June 2009. The question was if we could approximate the price would be for a 90 year lease extension. Comparative residencies in Limehouse with an extended lease were worth £191,400. The average ground rent payable was £55 invoiced every twelve months. The lease lapsed on 9 October 2080. Having 54 years left we approximated the premium to the freeholder to extend the lease to be within £34,200 and £39,600 not including expenses.
An example of a Freehold Enfranchisement decision for a Limehouse residence 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.