North East London leases on domestic properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in North East London will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold residencies in North East London with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your North East London leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a conversion apartment in North East London being sold with a lease of a little over fifty eight years left. Oliver informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
Last Winter we were called by Dr Hunter Lambert , who purchased a first floor flat in North East London in April 2004. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Similar premises in North East London with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed on 2 October 2084. Considering the 59 years unexpired we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.
Mr W Pérez completed a studio apartment in North East London in July 1996. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in North East London with an extended lease were valued around £255,000. The average amount of ground rent was £50 invoiced annually. The lease finished on 11 August 2095. Considering the 70 years unexpired we calculated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including professional charges.