As the length of the unexpired term of a Little Ilford residential lease lessens so does its value and therefore the value of your property. If the residual term has, over 99 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Little Ilford will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 Little Ilford can be a difficult process. We recommend you procure professional help from a lawyer and surveyor with experience in lease extensions.
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 Little Ilford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Matthew, came dangerously close to the eighty-year mark with the lease on his purpose- built flat in Little Ilford. In buying his home two decades ago, the unexpired term was of no significance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Matthew was able to extend his lease at the eleventh hour last September. Matthew and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If the lease had descended lower than eighty years, the price would have gone up by a minimum £1,150.
In 2011 we were approached by Dr Ollie Allen who, having purchased a studio flat in Little Ilford in October 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Little Ilford with an extended lease were worth £200,000. The average amount of ground rent was £50 collected quarterly. The lease finished in 2104. Having 78 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.
An example of a Freehold Enfranchisement case for a Little Ilford premises is 9 Granville Road in June 2014. The tribunal determines the enfranchisement price payable by the applicants for the freehold was £32,548 This case affected 5 flats. The unexpired residue of the current lease was 73.8 years.