With a residential leasehold premises in Limehouse, you are actually purchasing a right to reside in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Limehouse with a lease approaching 81 years unexpired should seriously think of extending it without delay. Once a lease has below eighty years remaining, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Limehouse with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Limehouse,the lease extension lawyers that we work with will always be prepared 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.
In the wake of 6 months of lengthy negotiations with the freeholder of her basement apartment in Limehouse, Mia initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The transaction was finalised in November 2007. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. N Watson completed a recently refurbished flat in Limehouse in May 1998. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparable homes in Limehouse with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed quarterly. The lease expired in 2099. Considering the 73 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement case 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.