Little Ilford leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Little Ilford will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold premises in Little Ilford with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Engaging our service will provide you increased control over the value of your Little Ilford leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her one bedroom apartment in Little Ilford, Millie initiated the lease extension process just as her lease was coming close to the all-important eighty-year mark. The legal work was concluded in October 2015. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. P Hill completed a purpose-built flat in Little Ilford in November 2012. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar properties in Little Ilford with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed per annum. The lease finished in 2106. Given that there were 80 years unexpired we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Little Ilford property 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 related to 5 flats. The unexpired lease term was 73.8 years.