The value of Limehouse leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is below than 80 years
Leasehold properties in Limehouse with more than one hundred years remaining 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Limehouse,the lease extension experts 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 Limehouse valuers.
Last Winter Oliver, came seriously close to the eighty-year mark with the lease on his purpose- built apartment in Limehouse. Having purchased his home two decades ago, the lease term was of little relevance. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Oliver was able to extend his lease just under the wire last May. Oliver and the landlord who owned the flat above subsequently agreed on a premium of £5,000 . If he not met the deadline, the figure would have gone up by a minimum £950.
Mrs F Petit moved into a ground floor flat in Limehouse in March 1999. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Similar properties in Limehouse with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2103. Having 77 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
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.