As the the remaining lease term of a Limehouse residential lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Limehouse will qualify for this right; nevertheless a conveyancing solicitor will be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Lease extensions in Limehouse can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor 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 a wealth of experience 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.
Off the back of protracted negotiations with the freeholder of her two bedroom apartment in Limehouse, Charlotte started the lease extension process just as the lease was approaching the crucial eighty-year deadline. The lease extension was concluded in March 2008. The landlord’s charges were kept to an absolute minimum.
Last Spring we were called by Mr P David , who purchased a basement apartment in Limehouse in February 2007. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparative properties in Limehouse with an extended lease were valued about £225,800. The average ground rent payable was £60 invoiced quarterly. The lease ended on 8 August 2086. Given that there were 60 years left we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of professional charges.
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.