The only way is down when it comes to Limehouse lease terms. Limehouse flats that have a residual term shorter than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Limehouse,the lease extension experts that we work with will always be willing 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.
Two years ago Harry, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Limehouse. In buying his property 19 years ago, the unexpired term was of minimal concern. by good luck, he noticed he needed to take action soon on Extending the lease. Harry arranged for a lease extension at the eleventh hour last March. Harry and the freeholder via the management company ultimately agreed on sum of £5,500 . If he had missed the deadline, the sum would have gone up by at least £900.
Mr and Mrs. M Lewis was assigned a lease of a purpose-built apartment in Limehouse in January 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Limehouse with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected annually. The lease finished in 2102. Considering the 76 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Limehouse flat 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.