Unfortunately that a North East London residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the North East London property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. The majority of leasehold owners in North East London will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in North East London with more than one hundred years remaining 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
The lawyers that we work with procure North East London lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Kian owned a conversion apartment in North East London on the market with a lease of a few days over 61 years left. Kian informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Kian to exercise his statutory right. Kian procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. B Norbert completed a newly refurbished apartment in North East London in May 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Identical flats in North East London with an extended lease were worth £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease expired on 5 March 2078. Considering the 52 years unexpired we approximated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of expenses.
Dr Natalie Moreau completed a ground floor flat in North East London in July 2007. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Identical homes in North East London with a long lease were valued around £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease concluded in 2089. Taking into account 63 years remaining we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus professional charges.